Analysis of Cash Flows
In its consolidated cash flow statement for the year ended December 31, 20X2, Lamb Corporation reported operating cash inflows of $284,000, financing cash outflows of $230,000, $80,000 for investing cash outflows, and an ending cash balance of $57,000. Lamb purchased 70 percent of Mint Company’s common stock on March 12, 20X1, at book value. Mint reported net income of $30,000, paid dividends of $10,000 in 20X2, and is included in Lamb’s consolidated statements. Lamb paid dividends of $45,000 in 20X2. The indirect method is used in computing cash flow from operations.
Required
a. What was the consolidated cash balance at January 1, 20X2?
b. What amount was reported as dividends paid in the cash flow from financing activities section of the statement of cash flows?
c. If the other adjustments to reconcile consolidated net income and cash provided by operations resulted in a $77,000 increase over net income, what amount was reported as consolidated net income for 20X2?