New Life Corporation Has Just Finished Preparing a Consolidated Balance

question 26

Multiple Choice

New Life Corporation has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X9. The following items are proposed for inclusion in the consolidated cash flow statement: New Life holds 75 percent of the voting stock of Shane Pharmaceuticals, acquired at book value on June 21, 20X6. On the date of the acquisition, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Shane.
Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash provided by operating activities for 20X9?

• A) $350,000
• B) $463,000
• C) $335,000
• D) $421,000

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Definitions:

Pharyngeal Gill Slits

Openings in the pharynx that serve as a respiratory feature in some aquatic organisms, a characteristic of chordates.

Nerve Cord

Bundle of nerves that runs the length of a body.

Adult Tunicates

Marine invertebrates that, during their adult stage, are fixed in place and have a sac-like body covered by a tunic.

Anatomically Modern Humans

Homo sapiens exhibiting physical characteristics similar to those of human populations today, dating back approximately 200,000 years ago.