Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 29

Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent-owned subsidiary Oakley Co. follow:

Additional Information for Fiscal Year 2014
• Iverson and Oakley's consolidated net income was $45,000.
• Oakley paid $5,000 in dividends during the year. Iverson paid $12,000 in dividends.
• Oakley sold $11,000 worth of merchandise to Iverson during the year.
• There were no purchases or sales of long-term assets during the year.
In the 2014 consolidated statement of cash flows for Iverson Company:
Net cash flows from operating activities were
A) $12,000.
B) $20,000.
C) $24,000.
D) $25,000.