Pure Life Corporation Has Just Finished Preparing a Consolidated Balance

question 51

Multiple Choice

Pure Life Corporation has just finished preparing a consolidated balance sheet,income statement,and statement of changes in retained earnings for 20X9.The following items are proposed for inclusion in the consolidated cash flow statement:
Pure Life holds 75 percent of the voting stock of Shane Pharmaceuticals,acquired at book value on June 21,20X6.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 used in investing activities for 20X9?

• A)$200,000
• B)$142,000
• C)$155,000
• D)$130,000

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Definitions:

Multidomestic Strategy

A marketing strategy where a company customizes its product offerings and marketing approach to suit different national conditions and preferences.

Differentiated Needs

The concept that individuals or groups have unique requirements or preferences that need specific attention or solutions.

Cost Leadership

A business strategy focused on achieving the lowest operational costs within an industry to offer lower prices than competitors.

Global Integration

The process by which a company combines different global activities so the different parts of the corporation use the same methods.