Using the same information presented in problem 12, what is the noncontrolling interest’s share of the subsidiary’s net income?

a. $27,000.

b. $28,290.

c. $28,620.

d. $30,000.

Problem 12

Net cash flows from operating activities were

a. \($12,000\).

b. \($20,000\).

c. \($24,000\).

d. \($25,000\).

Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent–owned subsidiary Oakley Co. follow:

Additional Information for Fiscal Year 2011

• Iverson and Oakley’s consolidated net income was \($45,000\).
• Oakley paid \($5,000\) in dividends during the year. Iverson paid \($12,000\) in dividends.
• Oakley sold \($11,000\) worth of merchandise to Iverson during the year.
• There were no purchases or sales of long-term assets during the year.
In the 2011 consolidated statement of cash flows for Iverson Company:

Transcribed Image Text:

Cash Accounts receivable (net) Merchandise inventory Buildings and equipment (net) Trademark Totals Accounts payable Notes payable, long-term Noncontrolling interest Common stock, $10 par Retained earnings (deficit) Totals 2011 $ 7,000 2010 $ 20,000 38,000 55,000 85,000 45,000 95,000 105,000 85,000 100,000 $327,000 $ 75,000 $308,000 $ 63,000 25,000 -0- 39,000 35,000 200,000 200,000 13,000 (15,000) $327,000 $308,000