Plywood Corporation's consolidated cash flow statement for the year ended December 31,20X8,reported operating cash inflows of $160,000,financing cash outflows of $90,000,and investing cash outflows $55,000,and an ending cash balance of $75,000.Plywood acquired 75 percent of Sawdust Company's common stock on July 1,20X6,at book value.At that date,the fair value of the noncontrolling interest was equal to 25 percent of Sawdust Company's book value.Sawdust reported net income of $20,000,paid dividends of $8,000 in 20X8,and is included in Plywood's consolidated statements.Plywood paid dividends of $25,000 in 20X8.The indirect method is used in computing cash flow from operations.
-Based on the information provided,what was the consolidated cash balance at January 1,20X8?
A)$60,000
B)$85,000
C)$15,000
D)$380,000

Question

Quizplus · Accepted Answer

To find the consolidated cash balance at the beginning of the year, you can use the formula: Beginning Cash Balance = Ending Cash Balance - Operating Cash Inflows + Financing Cash Outflows + Investing Cash Outflows. Plugging in the values: $75,000 - $160,000 + $90,000 + $55,000 = $60,000.

Plywood Corporation's Consolidated Cash Flow Statement for the Year Ended