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New Life Corporation Has Just Finished Preparing a Consolidated Balance

question 6

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New Life Corporation has just finished preparing a consolidated balance sheet,income statement,and statement of changes in retained earnings for 2009.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 21,2006.On the date of the acquisition,the fair value of the noncontrolling interest was equal to 25 percent of the book value of Shane.
New Life Corporation has just finished preparing a consolidated balance sheet,income statement,and statement of changes in retained earnings for 2009.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 21,2006.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 2009? A) $350,000 B) $463,000 C) $335,000 D) $421,000
-Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash provided by operating activities for 2009?


Definitions:

Monopolist

A Monopolist is a sole provider of a good or service in a market, possessing significant market power to set prices and output levels.

Quantity Q₁

The amount of a specific good or service that is available or being considered at a designated point.

Linear Demand Curve

A graphical representation showing a straight-line relationship between the price of a good and the quantity demanded.

Marginal Revenue

The increase in total revenue resulting from selling one additional unit of a product or service.

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