On January 1, 2018, Beilich Enterprises bought 20% of the outstanding common stock of Wolfe...
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Accounting
On January 1, 2018, Beilich Enterprises bought 20% of the outstanding common stock of Wolfe Construction Company for $640.0 million cash. Wolfes net income for the year ended December 31, 2018, was $320.0 million. During 2018, Wolfe declared and paid cash dividends of $64.0 million. Beilich recorded the investment as follows:
($ in millions)
Purchase
Investment in Wolfe Construction shares
640.0
Cash
640.0
Net income
Investment in Wolfe Construction shares (20% $320.0 million)
64.0
Investment revenue
64.0
Dividends
Cash (20% $64.0 million)
12.8
Investment in Wolfe Construction shares.
12.8
Required: What would be the pretax amounts related to the investment that Beilich would report in its statement of cash flows for the year ended December 31, 2018? (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Cash outflows should be indicated by a minus sign.)
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