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Parent controls Subsidiary Company. Below is an abbreviated version of the Consolidated Income Statement for Parent and Subsidiary for the current year. Selected balance sheet
Parent controls Subsidiary Company. Below is an abbreviated version of the Consolidated Income Statement for Parent and Subsidiary for the current year. Selected balance sheet amounts as of the end of the current and prior year are also provided. Parent company has significant influence over Homer Company. Homer pays all dividends as soon as they are declared. Revenue 700,000 Income from equity method investment in Homer Co. | 295,000 Depreciation expense (47,000) Other expenses (378,000) Consolidated net income 570,000 Net income attributable to noncontrolling interest (105,000 Net income attributable to parent 465,000 Current Prior Accounts receivable 75,200 97,000 Investment in Homer Company 378,000 215,000 Which amount from the income statement is the starting point for the presentation of operating cash flows assuming the indirect method is used? 1. How much did Parent receive as cash dividends from Homer Company? 2. What will be reported as operating cash flows? Each answer is 1 numeric amount with no punctuation
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