Presented below are the consolidated balance sheet accounts of Brimer Inc. and its subsidiary, Dore Corporation, as of December 31, 20X6 and 20X5.

1. On January \(20,20 \mathrm{X} 6\), Brimer Inc. issued 10,000 shares of its common stock for land having a fair value of \(\$ 215.000\).
2. On February 5, 20X6. Brimer Inc. reissued all of its treasury stock for \(\$ 44,000\).
3. On May 15, 20X6, Brimer Inc. paid a cash dividend of \(\$ 58,000\) on its common stock.
4. On August 8, 20X6, equipment was purchased for \(\$ 127,000\).
5. On September 30. 20X6, equipment was sold for \(\$ 40,000\). The equipment cost \(\$ 62,000\) and had a carrying amount of \(\$ 34.000\) on the date of sale.
6. On December 15, 20X6, Dore Corporation paid a cash dividend of \(\$ 50,000\) on its common stock.
7. A goodwill impairment loss of \(\$ 3,000\) was recognized in 20X5.
8. Deferred income taxes represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial reporting.
9. Net income for 20X6 was as follows:

10. Brimer Inc. owns 70 percent of its subsidiary, Dore Corporation. There was no change in the ownership interest in Dore Corporation during 20X5 and 20X6. There were no intercompany transactions other than the dividend paid to Brimer Inc. by its subsidiary.
\section*{Required}
Prepare a consolidated statement of cash flows for Brimer Inc. and its subsidiary for the year ended December 31, 20X6.

Transcribed Image Text:

Assets Cash Marketable Equity Securities at cost Allowance to Reduce Marketable Equity Securities to Market Accounts Receivable. net Inventories Land Plant and Equipment Accumulated Depreciation Goodwill, net Total Assets Liabilities and Stockholders' Equity 20X6 20X5 Net Increase (Decrease) $ 313.000 $ 195,000 $118,000 175,000 175.000 -0- (13.000) (24.000) 11,000 418.000 440.000 (22.000) 595.000 525,000 70.000 385.000 170,000 215.000 755.000 690.000 65.000 (199.000) (145,000) 57.000 60,000 $2,486,000 $2,086,000 (54,000) (3,000) $400,000 Current Portion of Long-Term Note $ 150.000 Accounts Payable and Accrued Liabilities 595.000 $ 150,000 474,000 Note Payable, Long-Term 300.000 450,000 Deferred Income Taxes 44,000 32,000 $ -0- 121,000 (150,000) 12,000 Minority Interest in Net Assets of Subsidiary 179,000 161.000 18.000 Common Stock, par $10 580.000 480.000 100,000 Additional Paid-In Capital 303.000 180.000 123.000 Retained Earnings 335.000 195.000 140.000 Treasury Stock, at cost -0- (36,000) 36.000 Total Liabilities and Stockholders' Equity $2.486.000 $2,086.000 $400,000