Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In its consolidated cash flow statement for the year ended December 31, 20X2, Plant Corporation reported operating cash inflows of $282,000, financing cash outflows of
In its consolidated cash flow statement for the year ended December 31, 20X2, Plant Corporation reported operating cash inflows of $282,000, financing cash outflows of $232,000, investing cash outflows of $84,000 and an ending cash balance of $51,000. Plant purchased 80 percent of Stem Company's common stock on March 12, 20X1, at book value. Stem reported net income of $39,000, paid dividends of $14,000 in 20X2, and is included in Plant's consolidated statements. Plant paid dividends of $50,00O in 20X2. The indirect method is used in computing cash flow from operations. Required a. What was the consolidated cash balance at January 1, 20X2? Consolidated cash balance b. What amount was reported as dividends paid in the cash flow from financing activities section of the statement of cash flows? Dividends paid c. If the other adjustments to reconcile consolidated net income and cash provided by operations resulted in a $85,000 increase over net income, what amount was reported as consolidated net income for 20X2? onsolidated net income
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