Anderson, Inc. has owned 70% of its subsidiary, Arthur Corp., for several years. The consolidated balance sheets of Anderson, Inc. and Arthur Corp. are presented below: Additional information for 2013:
Net cash flow from operating activities was:
A) $43,000.
B) $44,800.
C) $46,200.
D) $50,000.
E) $25,000.

Question

Anderson, Inc. has owned 70% of its subsidiary, Arthur Corp., for several years. The consolidated balance sheets of Anderson, Inc. and Arthur Corp. are presented below:  Additional information for 2013: 
Net cash flow from operating activities was:
A) $43,000. 
B) $44,800. 
C) $46,200. 
D) $50,000. 
E) $25,000.

Quizplus · Accepted Answer

$50,000 + Depreciation $14,000 ($170,000 - $156,000) + Amortization $2,000 ($18,000 -$16,000) - A/R $21,000 ($75,000 - $54,000) - Inventory $11,000 ($100,000 - $89,000) + A/P $9,000 ($60,000 - $51,000) = $43,000 Net Consolidated Cash Flow from Operations