The Flavor Company owns 25 percent of the shares of Mac, and accounts for its investment using the equity method.During the year Mac earned income of $1,500 million and declared dividends.Flavor's share of the dividends were $150.0 million.
Required:

a. What amount of income did Flavor report from its investment in Mac?
b. What amount of cash flow from operations did Flavor report for the year from its investment in Mac?

Question

The Flavor Company owns 25 percent of the shares of Mac, and accounts for its investment using the equity method.During the year Mac earned income of $1,500 million and declared dividends.Flavor's share of the dividends were $150.0 million.
Required:

a.	What amount of income did Flavor report from its investment in Mac?
b.	What amount of cash flow from operations did Flavor report for the year from its investment in Mac?

Quizplus · Accepted Answer

The Answer of The Flavor Company owns 25 percent of the shares of Mac, and accounts for its investment using the equity method.During the year Mac earned income of $1,500 million and declared dividends.Flavor's share of the dividends were $150.0 million.
Required:

a.	What amount of income did Flavor report from its investment in Mac?
b.	What amount of cash flow from operations did Flavor report for the year from its investment in Mac?

The Flavor Company Owns 25 Percent of the Shares of Mac