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

Business

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