Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In its consolidated cash flow statement for the year ended December 3 1 , 2 0 X 2 , Plant Corporation reported operating cash inflows

In its consolidated cash flow statement for the year ended December 31,20X2, Plant Corporation reported operating cash inflows of $284,000, financing cash outflows of $230,000, investing cash outflows of $80,000, and an ending cash balance of $57,000. Plant purchased 70 percent of Stem Companys common stock on March 12,20X1, at book value. Stem reported net income of $30,000, paid dividends of $10,000 in 20X2, and is included in Plants consolidated statements. Plant paid dividends of $45,000 in 20X2. The indirect method is used in computing cash flow from operations.
Required:
What was the consolidated cash balance at January 1,20X2?
What amount was reported as dividends paid in the cash flow from financing activities section of the statement of cash flows?
If the other adjustments to reconcile consolidated net income and cash provided by operations resulted in a $77,000 increase over net income, what amount was reported as consolidated net income for 20X2?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Management Managing Across Borders And Cultures

Authors: Helen Deresky

10th Global Edition

1292430362, 978-1292430362

Students also viewed these Accounting questions