How will dividends be reported in consolidated statement of cash flows?

Multiple Choice

• $15,000 decrease as a financing activity.

• $25,000 decrease as a financing activity.

• $10,000 decrease as a financing activity.

• $23,000 decrease as a financing activity.

• $17,000 decrease as a financing activity.

The following information has been taken from the consolidation worksheet of Graham Company and its 80% owned subsidiary, Stage Company (1.) Graham reports a loss on sale of land (to an outside party) of $5,000. The land cost Graham $20,000. (2.) Noncontrolling interest in Stage's net income was $30,000. (3.) Graham paid dividends of $15,000. (4.) Stage paid dividends of $10,000. (5.) Excess acquisition-date fair value over book value amortization was $6,000. (6.) Consolidated accounts receivable decreased by $8,000. (7.) Consolidated accounts payable decreased by $7,000