Question
How do I calculate the amount of cash dividends received without knowing the net sales or income int he problem presented below? And I how
How do I calculate the amount of cash dividends received without knowing the net sales or income int he problem presented below? And I how do calculate the adjustment to net income without knowing the net income?
Long-term Equity Investments
The annual report of The Arcadia Company discloses the following amounts on its consolidated statement of income:
Year 1. Year 2. Year 3
---------- ---------- ----------
$700 $830 $1,040 (Equity in earnings of unconsolidated affiliates)
Further, on Arcadia's consolidated balance sheet, it reports the following amounts for its investment in its unconsolidated affiliates:
Year 1 Year 2 Year 3
------- ---------- ---------
$21000 $21,430. $21,900 (Investment in unconsolidated affiliates)
Calculate the amount of cash dividends received by The Arcadia Company from its unconsolidated affiliates in Year 2 and Year 3.
Year 2: $_______
Year 3: $_______
Calculate the adjustment to net income that appears on Arcadia's statement of cash flow in Year 2 and Year 3 for "undistributed earnings of unconsolidated affiliates."
Year 2: $________
Year 3: $________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started