Tower Corporation's Controller Has Just Finished Preparing a Consolidated Balance

question 3

Multiple Choice

Tower Corporation's controller has just finished preparing a consolidated balance sheet,income statement,and statement of changes in retained earnings for the year ended December 31,2009.Tower owns 80 percent of Network Corporation's stock,which it acquired at underlying book value on November 1,2006.At that date,the fair value of the noncontrolling interest was equal to 20 percent of Network Corporation's book value.The following information is available:
Consolidated net income for 2009 was $160,000.
Network reported net income of $50,000 for 2009.
Tower paid dividends of $30,000 in 2009.
Network paid dividends of $10,000 in 2009.
Tower issued common stock on February,18,2009,for a total of $100,000.
Consolidated wages payable decreased by $6,000 in 2009.
Consolidated depreciation expense for the year was $15,000.
Consolidated accounts receivable decreased by $20,000 in 2009.
Bonds payable of Tower with a book value of $102,000 were retired for $100,000 on December 31,2009.
Consolidated amortization expense on patents was $10,000 for 2009.
Tower sold land that it had purchased for $75,000 to a nonaffiliate for $80,000 on June 10,2009.
Consolidated accounts payable decreased by $7,000 during 2009.
Total purchases of equipment by Tower and Network during 2009 were $180,000.
Consolidated inventory increased by $36,000 during 2009.
There were no intercompany transfers between Tower and Network in 2009 or prior years except for Network's payment of dividends.Tower uses the indirect method in preparing its cash flow statement.
-Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash used in financing activities for 2009?

• A)$32,000
• B)$38,000
• C)$42,000
• D)$70,000

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Definitions:

Metatarsals

The five long bones located in the forefoot between the ankle and the toes.

Cranial Bones

The bones that form the skull, protecting the brain and supporting the structures of the face.

Osteoblasts

Osteoblasts are cells with a key role in bone formation, responsible for synthesizing and mineralizing bone tissue.

Palmar Bones

The set of bones forming the framework of the palm of the hand, also known as the carpal bones.