What will be the effect of the Toys R US investment

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Question - Suppose that Chuckie Cheese acquired 33.33% (one-third) of Toys R US from an unrelated third party for $80 million on October 1, 2012. At the acquisition date, the total book value of Toys R US's shareholders' equity was $240 million. Both have September 30 fiscal year ends. For the fiscal year ended September 30, 2013, Toys R US earned a total net income of $70 million and paid total dividends of $20 million. 

Required - What will be the effect of the Toys R US investment on Chuckie Cheese's cash flow statement for the year ended September 30, 2013? Identify all of the line items (and their amounts) that you might expect to be affected.

Reference no: EM133057933

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