Winter Corporation\'s consolidated cash flow statement for the year ended Decemb

Question

Winter Corporation's consolidated cash flow statement for the year ended December 31, 20X2, reported operating cash inflows of $100,000, financing cash inflows of $30,000, investing cash outflows of $120,000, and an ending cash balance of $50,000. Winter acquired 60 percent of Snowboard Company's common stock on April 1, 20X0 at book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Snowboard's book value. Snowboard reported net income of $30,000, paid dividends of $20,000 in 20X2, and is included in Winter's consolidated statements. Winter paid dividends of $40,000 in 20X2. The indirect method is used in computing cash flows from operations.

6.

Required information

Based on the information provided, what was the consolidated cash balance at January 1, 20X2?

a. $300,000

b. $100,000

c. $60,000

d. $40,000

Explanation / Answer

d) $ 40000 cash balance at January 1, 2012

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