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Pure Life Corporation has just finished preparin retained earnings for 20X9. The following items Decrease in accounts receivable Increase in accounts payable Increase in inventory

Pure Life Corporation has just finished preparin retained earnings for 20X9. The following items Decrease in accounts receivable Increase in accounts payable Increase in inventory

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Decrease in accounts receivable $ 15,000 Increase in accounts payable Increase in inventory Increase in bonds payable Equipment purchased Common stock repurchased Depreciation reported for current period Gain recorded on sale of equipment Book value of equipment sold Goodwill impairment loss Sales 18,000 20,000 50,000 200,000 40,000 50,000 12,000 58,000 12,000 800,000 Cost of goods sold Dividends paid by parent Dividends paid by subsidiary Consolidated net income for the year Income assigned to the noncontrolling interest 20,000 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. 350,000 45,000 20,000 400,000 Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash used in financing activities for 20X9? Multiple Choice $40,000 $55,000 $90,000 $10,000
Transcribed Image Text: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: Decrease in accounts receivable $ 15,000 Increase in accounts payable Increase in inventory Increase in bonds payable Equipment purchased Common stock repurchased Depreciation reported for current period Gain recorded on sale of equipment Book value of equipment sold Goodwill impairment loss Sales 18,000 20,000 50,000 200,000 40,000 50,000 12,000 58,000 12,000 800,000 Cost of goods sold Dividends paid by parent Dividends paid by subsidiary Consolidated net income for the year Income assigned to the noncontrolling interest 20,000 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. 350,000 45,000 20,000 400,000 Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash used in financing activities for 20X9? Multiple Choice $40,000 $55,000 $90,000 $10,000
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