Question

Xerox has equity investments, and several of its consolidated subsidiaries have noncontrolling interests outstanding. Xerox’s consolidated income statement for 2011 shows the following (dollars in millions):
Income before income taxes and equity income ....... $1,565
Income taxes ...................... (386)
Equity in net income of unconsolidated affiliates ........ 149
Net income ....................... 1,328
Less: Net income attributable to noncontrolling interests .... 33
Net income attributable to Xerox .............. $1,295
1. Assuming each of the equity companies is 40% owned by Xerox, estimate the 2011 earnings for these companies.
2. Independent of requirement 1, assume that each of the noncontrolling interests is a 20% interest, estimate the 2011 earnings of these companies.
3. Xerox prepares a cash flow statement using the indirect method. On it, net income is adjusted by $86 million for undistributed earnings of affiliated companies. Estimate dividends received from equity investees.



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  • CreatedFebruary 20, 2015
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