Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2018, Belilich Enterprises bought 20 % of the outstanding common stock of Wolfe Construction Company for $630.0 million cash. Wolfe's net income

image text in transcribed
image text in transcribed
On January 1, 2018, Belilich Enterprises bought 20 % of the outstanding common stock of Wolfe Construction Company for $630.0 million cash. Wolfe's net income for the year ended December 31, 2018, was $315.0 million. During 2018, Wolfe declared and paid cash dividends of $63.0 million. Beilich recorded the investment as follows: ($ in millions) Purchase Investment in Wolfe Construction shares Cash 630.e 630.e Net income Investment in Wolfe Construction shares (20% x $315.e million) 63.0 63.0 Investment revenue Dividends Cash (20% x $63.8 million) Investment in Wolfe Construction shares 12.6 12.6 Required: What would be the pretax amounts related to the investment that Beilich would report in its statement of cash flows for the year ended December 31, 2018? (Enter your answers in millions rounded to 1 decimal place (i.., 5,500,000 should be entered as 5.5). Cash outflows should be indicated by a minus sign.) Operating activities Investing activities Financing activities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Cost Management A Strategic Emphasis

Authors: Edward Blocher, David E. Stout, Gary Cokins, Kung Chen

4th Edition

0073128155, 978-0073128153

More Books

Students also viewed these Accounting questions