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

question 34

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 was the change in cash balance for the consolidated entity for 2009?

Definitions:

P-Value

The probability of observing a statistical summary at least as extreme as the one observed if the null hypothesis is true.

Sample Mean

The average of a set of numerical values taken from a larger population, used as an estimate of the population mean.

Critical Value

A threshold value in hypothesis testing used to determine whether to reject the null hypothesis, based on the observed statistic and the chosen significance level.

Null Hypothesis

A hypothesis that there is no significant difference or effect and serves as a default position until evidence suggests otherwise.