Anderson, Inc Additional Information for 2013: - the Combination Occurred Using the for Several

question 79

Multiple Choice

Anderson, Inc. has owned 70% of its subsidiary, Arthur Corp., for several years. The consolidated balance sheets of Anderson, Inc. and Arthur Corp. are presented below: $\begin{array}{lrr}&2013&2012\\\text { Cash } & \$ 8,000 & \$ 26,000 \\\text { Accounts Receivable (net) } & 75,000 & 54,000 \\\text { Inventory } & 100,000 & 89,000 \\\text { Plant \& Equipment (net) } & 156,000 & 170,000 \\\text { Copyright } & 16,000 & 18,000 \\& \$ 355,000 & \$ 357,000\\\\ \text { Accounts payable } & \$ 60,000&\$51,000 \\ \text { Long-term Debt } & 0&35,000 \\\text { Non-controlling interest } & 27,000&25,000 \\ \text { Common stock, \$1 par } & 100,000 & 100,000 \\ \text { Retained earnings } & \$355,000&\$357,000 \\\end{array}$ Additional information for 2013: - The combination occurred using the acquisition method. Consolidated net income was $\$ 50,000$ . The non-controlling interest share of consolidated net income of Arthur was $\$ 3,200$ .
- Arthur paid $\$ 4,000$ in dividends.
- There were no disposals of plant \& equipment or copyright this year. Net cash flow from financing activities was:

• A)$(28,000).
• B)$(35,000).
• C)$(13,000).
• D)$(63,000).
• E)$(61,000).

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Definitions:

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

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The part of the mind that contains thoughts and feelings that are not currently in conscious awareness but can easily be brought to consciousness.

Unconscious

The part of the mind that houses memories, desires, and feelings not within the immediate awareness of the individual.