Alford Company and its 80 percent-owned subsidiary, Knight, have the following income statements for 2013: Additional Information
Question:
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Additional Information for 2013
€¢ Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.
€¢ Unrealized inventory profits at January 1 were $6,000, but at December 31, they are $9,000.
€¢ Annual excess amortization expense resulting from the acquisition is $11,000.
€¢ Knight paid dividends totaling $20,000.
€¢ The noncontrolling interest's share of the subsidiary's income is $9,800.
€¢ During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.
Using either the direct or indirect method, compute net cash flows from operating activities during the period for the business combination.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
DIRECT METHOD Cash revenues add book values eliminate intraentity transfers and add decrease in acco...View the full answer
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
