Equity method investment; statement of cash flow effects
Response to the following problem:
On January 1, 2016, Beilich Enterprises bought 20% of the outstanding common stock of Wolfe Construction Company for $600 million cash. Wolfe's net income for the year ended December 31, 2016, was $300 million. During 2016, Wolfe declared and paid cash dividends of $60 million. Beilich recorded the investment as follows:
Purchase ($ in millions)
Investment in Wolfe Construction shares 600
Cash 600
Net income
Investment in Wolfe Construction shares (20% x $300) million) 60
Investment revenue 60
Dividends
Cash (20% x $60 mason) 12
Investment in Wolfe Construction shares 12
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, 2016?