Comparative consolidated financial statements for Pes Corporation and its 90 percent-owned subsidiary, Sun Corporation, at and for the years ended December 31 are as follows:

REQUIRED
Prepare a consolidated statement of cash flows for Pes Corporation and Subsidiary for the year ended December 31, 2011, using either the indirect method or the direct method. All changes in plant assets are due to asset acquisitions with cash and depreciation. Sun's net income and dividends for 2011 are $100,000 and $40,000, respectively.

Transcribed Image Text:

PES CORPORATION AND SUBSIDIARY COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS (IN THOUSANDS) 5 0 Year 2011 Year 2010 2011-2010 Income and Retained Earnings Statements for the Yea Change $150 Cost of sales Depreciation expense Other operating expenses Noncontrolling interest share $ 1,350 (700) (102) (278) S1,200 (649) (102) (241) 51 Controlling share of income Add: Beginning retained earnings Less: Dividends 380 (80) 560 260 120 Ending Retained Earnings 380 180 Balance Sheets at December 31 $ 130 160 S (19) 10 Cash Accounts receivablenet Inventories Other current assets Plant and equipment-net 170 280 1,348 38 162 1,200 39 38 148 $2.141 1931 Total assets Equities $ 170 42 126 $ 44 Accounts payable Dividends payable Long-term liabilities Capital stock Other paid-in capital Retained earnings Noncontrolling interest-10% (22) 1,000 1,000 180 65 59 $2.141 1931 Total equities $216