Net cash flow from operating activities was: A-$44,800. B-$43,000. C-$46,200. D-
ID: 2508370 • Letter: N
Question
Net cash flow from operating activities was:
A-$44,800.
B-$43,000.
C-$46,200.
D-$25,000.
Options
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: 2013 2012 Cash Accounts Receivable (net) Inventory Plant & Equipment (net) Copyright $ 8,000 $ 26,000 75,00054,000 100,000 89,000 156,000 170,000 18.000 $355,000 $357 000 16,000 Accounts payable Long-term Debt Non-controlling interest Common stock, $1 par Retained earnings $ 60,000 $ 51,000 0 35,000 27,000 25,000 00,000 100,000 168,000 146.000 $355,000 $357,000 Additional information for 2013 . The combination occurred using the acquisition method Consolidated net income was $50,000. The non-controlling interest share of consolidated net income of Arthur was $3.200 Arthur paid $4.000 in dividends There were no disposals of plant & equipment or copyright this yearExplanation / Answer
The Answer is B -$43,000
Net cash flow from operating activities
Net Income $50,000
Add : Depreciation $14,000
($170,000 - $156,000)
Add : Amortization of Copyright $2,000
($18,000 -$16,000)
Less:Accounts Receivables ($21,000)
($75,000 - $54,000)
Less:Inventory ($11,000)
($100,000 - $89,000)
Add:Accounts Payable $9,000
($60,000 - $51,000)
Net Cash Flow from Operations $43,000
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