Company A acquires a 25% stake in Company B for $200,000. In Year 1, Company B generates
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Question:
Company A acquires a 25% stake in Company B for $200,000. In Year 1, Company B generates Net Income of $50,000, and pays out a dividend of $10,000.
How would this be reflected on each of the three financial statements? What is the impact to Company A's Free Cash Flow?
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