Statement of Cash Flows: How to Account for Equity Method Investments 

This video shows the effect of an Equity Method investment on the Statement of Cash Flows. When the investor recognizes a share of the investee's Net Income, the investor must subtract this amount as an adjustment in the cash flow from operating activities section. When the investor recognizes a share of the investee's Net Loss, the investor must add this amount as an adjustment in the cash flow from operating activities section. If the investor receives dividends from the investee, the dividends received are added as an adjustment in the cash flow from operating activities section.-
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