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

Be aware of the strategic significance of innovations in product delivery.

Recognize the difference between internal and external customers and utilities.

Understand the difference between operational effectiveness and strategic positioning.

Understand and calculate manufacturing cycle efficiency (MCE).

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Definitions:

Minor Failure

A small or insignificant defect or flaw, especially in a product, system, or mechanism, that does not generally inhibit its intended function.

Repudiation

The rejection or refusal to acknowledge or pay a debt or fulfill a contractual obligation, often leading to a breach of contract claim.

Frustration

A legal doctrine that excuses parties from fulfilling their contract obligations due to unforeseen circumstances rendering the contract impossible, illegal, or radically different.

Frustrating Event

An unforeseen event that significantly changes the conditions of a contract, making it impossible to fulfill and potentially voiding the agreement.