Goehring, Inc

Multiple Choice

Goehring, Inc.owns 70 percent of Harry Corp.The consolidated income statement for a year reports $40,000 Noncontrolling Interest in Harry Corp.'s Net Income.Harry paid dividends in the amount of $100,000 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 $70,000, and decrease in the operating section of $30,000.
B) Increase in the operating section of $70,000, and decrease in the financing section of $30,000.
C) Increase in the operating section of $70,000.
D) Decrease in the financing section of $30,000.
E) No effects.