Anderson, Inc. has owned 70% of its subsidiary, Arthur Corp., for several years. The consolidated balance sheets of Anderson, Inc. and Arthur Corp. are presented below: 20182019Cash$8,000 $26,000 Accounts Receivable (net) 75,000 54,000 Inventory 100,000 89,000 Plant & Equipment (net) 156,000 170,000 Copyright 16,000 18,000 $355,000 $357,000 Accounts payable$60,000 $51,000 Long-term Debt 0 35,000 Noncontrolling interest 27,000 25,000 Common stock, $1 par 100,000 100,000 Retained earnings 168,000 146,000 $355,000 $357,000 ??Additional information for 2018:? The combination occurred using the acquisition method. Consolidated net income was $50,000.? The noncontrolling interest share
of consolidated net income of Arthur was $3,200. ? Arthur paid $4,000 in dividends. There were no purchases or disposals of plant & equipment or copyright this year. Net cash flow from operating activities was:
A. $43,000.
B. $25,000.
C. $46,200.
D. $50,000.
E. $44,800.
Answer: A
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