Polar Corporation's consolidated cash flow statement for the year ended December 31, 20X2, reported operating cash inflows of $100,000, financing cash inflows of $30,000, investing cash outflows of $120,000, and an ending cash balance of $50,000. Polar acquired 60 percent of Snow Company's common stock on April 1, 20X0 at book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Snow's book value. Snow reported net income of $30,000, paid dividends of $20,000 in 20X2, and is included in Polar's consolidated statements. Polar paid dividends of $40,000 in 20X2. The indirect method is used in computing cash flows from operations.Based on the information provided, what was the consolidated cash balance at January 1, 20X2?
A. $40,000
B. $60,000
C. $100,000
D. $300,000
Answer: A
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