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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