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Amalgamated owns 30% of Gamco. The book value of the investment on December 31, 2001, is $40,000. In 2002, Gamco earned $100,000 and paid dividends
Amalgamated owns 30% of Gamco. The book value of the investment on December 31, 2001, is $40,000. In 2002, Gamco earned $100,000 and paid dividends of $23,333.34. Amalgamated's net income was $1,000,000. What might Amalgamated's cashflow statement look like for the above accounting period? Amalgamated Net Income $1,000,000, Gamco earnings -$30,000, Gamco dividend +$7,000, CFO $977,000 Amalgamated Net Income $1,000,000, Gamco earnings -$30,000, Gamco dividend +$6,000, CFO $976,000 Amalgamated Net Income $1,000,000, Gamco earnings -$30,000, CFO $970,000, Gamco dividend +$6000, CFF +$6,000
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