Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent–owned subsidiary Oakley Co. follow:
|
2011 |
2010 |
|
|
Cash |
$ 7,000 |
$ 20,000 |
|
Accounts receivable (net) |
55,000 |
38,000 |
|
Merchandise inventory |
85,000 |
45,000 |
|
Buildings and equipment (net) |
95,000 |
105,000 |
|
Trademark |
85,000 |
100,000 |
|
Totals |
$327,000 |
$308,000 |
|
Accounts payable |
$ 75,000 |
$ 63,000 |
|
Notes payable, long term |
–0– |
25,000 |
|
Noncontrolling interest |
39,000 |
35,000 |
|
Common stock, $10 par |
200,000 |
200,000 |
|
Retained earnings (deficit) |
13,000 |
(15,000) |
|
Totals |
$327,000 |
$308,000 |
• Iverson and Oakley’s consolidated net income was $45,000.
• Oakley paid $5,000 in dividends during the year. Iverson paid $12,000 in dividends.
• Oakley sold $11,000 worth of merchandise to Iverson during the year.
• There were no purchases or sales of long term assets during the year.
In the 2011 consolidated statement of cash flows for Iverson Company:
Net cash flows from operating activities were
a. $12,000.
b. $20,000.
c. $24,000.
d. $25,000.