What must be used when reconciling net income to net cash provided by operating activities in a consolidated statement of cash flows?

When reconciling net income to net cash provided by operating activities in a consolidated statement of cash flows, total consolidated net income is required, including the portion attributable to noncontrolling interest. This is because the purpose of the consolidated statement of cash flows is to present the overall cash flows and financial position of the entire consolidated entity as a whole, not just from the perspective of the parent company or its controlling interest.

Consolidated net income reflects the total earnings of both the parent company and the subsidiaries, thereby giving a complete view of the entity's profitability. Including noncontrolling interest in the net income figure ensures that all shares of profit, regardless of ownership interest, are considered in the reconciliation process. This approach aligns with the principles of consolidation, which aim to present the financial performance and position of the entire group of companies as a single economic entity.

Using only the parent company's net income or only the noncontrolling interest's net income would misrepresent the true financial position and cash flow scenario of the consolidated entity. Additionally, considering only cash transactions with external parties does not account for all the operations of the consolidated group and fails to provide a comprehensive reconciliation of net income to net cash provided by operating activities.