Jupiter Corporation's Consolidated Cash Flow Statement for the Year Ended

question 40

Multiple Choice

Jupiter Corporation's consolidated cash flow statement for the year ended December 31,2008,reported operating cash inflows of $160,000,financing cash outflows of $90,000,and investing cash outflows $55,000,and an ending cash balance of $75,000.Jupiter acquired 75 percent of Ganymede Company's common stock on July 1,2006,at book value.At that date,the fair value of the noncontrolling interest was equal to 25 percent of Ganymede Company's book value.Ganymede reported net income of $20,000,paid dividends of $8,000 in 2008,and is included in Jupiter's consolidated statements.Jupiter paid dividends of $25,000 in 2008.The indirect method is used in computing cash flow from operations.
-Based on the information provided,what was the consolidated cash balance at January 1,2008?

• A)$60,000
• B)$85,000
• C)$15,000
• D)$380,000

Understand the concept of liability in business structures and ways to limit personal liability.

Grasp the roles and responsibilities of key corporate governance entities, such as the board of directors and stockholders.

Recognize the significance of employee ownership in corporations and the impact on corporate culture and stock ownership.

Understand the requirements and implications of different corporate classifications, such as B corporations and S corporations.

---

Definitions:

Heart Attack

A medical condition occurring when the flow of blood to the heart is blocked, often by a blood clot, causing damage to the heart muscle.

Medical Attention

Professional care or treatment provided by health care practitioners to address health concerns or injuries.

Sexual Harassment

Unwanted or unwelcome behavior of a sexual nature that affects an individual's dignity, creates an intimidating, hostile, degrading, humiliating, or offensive environment.

Social Roots

The foundational social influences and contexts from which individuals' behaviors, beliefs, and identities originate.