Waite, Inc

question 96

Multiple Choice

Waite, Inc. owns 85% of Knight Corp. The consolidated income statement for a year reports $60,000 Noncontrolling Interest in Knight Corp.'s Net Income. Knight paid dividends in the amount of $90,000 for the year. What are the effects of these transactions in the consolidated statement of cash flows for the year?

• A) Increase in the financing section of $76,500, and decrease in the operating section of $13,500.
• B) Increase in the operating section of $76,500, and decrease in the financing section of $13,500.
• C) Increase in the operating section of $76,500.
• D) Decrease in the financing section of $13,500.
• E) No effects.

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