Task: 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, cash outflows of $230,000, and $80,000 for investing and financing activities, respectively, 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 to do:
Question 1: What was the consolidated cash balance at January 1, 20X2?
Question 2: What amount was reported as dividends paid in the cash flow from financing activities section of the statement of cash flows?
Question 3: What adjustment to consolidated net income was made as a result of Lamb's ownership of Mint in deriving cash flow from operations?
Question 4: If the other adjustments to reconcile consolidated net income and cash provided by operations resulted in an increase of $77,000, what amount was reported as consolidated net income for 20X2?