Question: Xerox has equity investments and several of its consolidated subsidiaries

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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