Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 56

Problems 6 and 7 are based on the following information.
Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent-owned subsidiary Oakley Co.follow:
Additional Information for Fiscal Year 2011
• 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 2011 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.
LO3
LO4
LO4
LO4