CHAPTER 5
Retained Earnings, 1/1/06 = $488,000 (parent equity method balance) Dividends Paid = $136,000 (parent balance only) Retained Earnings, 12/31/06 = $583,000 (consolidated beginning balance plus net income less dividends paid) Cash and Receivables = $228,000 (add book values less $16,000 intercompany balance) ................
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