Waite, Inc

Multiple Choice

Waite, Inc. owns 85% of Knight Corp. The consolidated income statement for a year reports $60,000 Noncontrolling Interest in Knight Corp.'s Net Income. Knight paid dividends in the amount of $90,000 for the year. What are the effects of these transactions in the consolidated statement of cash flows for the year?

A) Increase in the financing section of $76,500, and decrease in the operating section of $13,500.
B) Increase in the operating section of $76,500, and decrease in the financing section of $13,500.
C) Increase in the operating section of $76,500.
D) Decrease in the financing section of $13,500.
E) No effects.