Question
Goehring, Inc. owns 70 percent of Harry Corp. The consolidated income statement for a year reports $40,000 Noncontrolling Interest in Harry Corp.'s Net Income. Harry
Goehring, Inc. owns 70 percent of Harry Corp. The consolidated income statement for a year reports $40,000 Noncontrolling Interest in Harry Corp.'s Net Income. Harry paid dividends in the amount of $100,000 for the year. What are the effects of these transactions in the consolidated statement of cash flows for the year?
A | No effects. | |
B | Increase in the operating section of $70,000. | |
C | Increase in the financing section of $70,000, and decrease in the operating section of $30,000. | |
D | Increase in the operating section of $70,000, and decrease in the financing section of $30,000. | |
E | Decrease in the financing section of $30,000. |
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