Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 1

Warrenton, Inc., owns 80 percent of Aminable Corporation.On a consolidated income statement, the Noncontsrolling Interest in the Subsidiary's Income is reported as $37,000. Aminable paid a total cash dividend of $100,000 for the year. How does this impact the consolidated statement of cash flows
a.The dividends paid to the outside owners are reported as a financing activity, but the non-controlling interest figure is not viewed as a cash flow.
b.The noncontrolling interest figure is reported as an investing activity, but the dividends amount paid to the outside owners is omitted entirely.
c.Neither figure is reported on the statement of cash flows.
d. Both dividends paid and the noncontrolling interest are viewed as financing activities.