Analysis of Cash Flows for Lamb Corporation
Not what you're looking for?
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
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. What adjustment to consolidated net income was made as a result of Lamb's ownership of Mint in deriving cash flow from operations?
d. 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?
Purchase this Solution
Solution Summary
This solution analyses the cash flow statements for Lamb Corporation by finding the consolidated cash balance, dividends paid in cash flow, and consolidated net income.
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Lean your Process
This quiz will help you understand the basic concepts of Lean.