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#1 Pecan Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes In retained earnings for the year ended
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Pecan Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes In retained earnings for the year ended December 31, 20X4. Pecan owns 60 percent of Sandy Corporation's stock, which it acquired at underlying book value on May 7, 20X1. At that date, the falr value of the noncontrolling interest was equal to 40 percent of Sandy Corporation's book value. You have been provided the following information: Consolidated net income for 204 was $271,000. Sandy reported net income of $70,000 for 204. Pecan pald dividends of $25,000 in 204. Sandy pald dividends of $15,000 in 204. Pecan issued common stock on April 7,204, for a total of $150,000 Consolidated wages payable increased by $7,000 in 204. Consolidated depreciation expense for the year was $21,000. Consolldated accounts recelvable decreased by $32,000 in 204. Bonds payable of Pecan with a book value of $204,000 were retired for $200,000 on December 31,204. Consolidated amortization expense on patents was $13,000 for 204. Pecan sold land that it had purchased for $142,000 to a nonaffillate for $134,000 on June 10,204. Consolidated accounts payable decreased by $12,000 during 204. Total purchases of equipment by Pecan and Sandy during 204 were $295,000. Consolidated Inventory Increased by $16,000 during 204 There were no intercompany transfers between Pecan and Sandy in 204 or prlor years except for Sandy's payment of dividends. Pecan uses the indirect method in preparing its cash flow statement. Requlred: a. What amount of dividends was pald to the noncontrolling interest during 204 ? b. What amount will be reported as net cash provided by operating activities for 204 ? c. What amount will be reported as net eash used in investing activities for 204 ? d. What amount will be reported as net cashused in financing activities for 204 ? e. What was the change in cash balance for the consolidated entity for 204 ? Answer is not complete. Complete this question by entering your answers in the tabs below. What amount of dividends was paid to the noncontrolling interest during 204Step by Step Solution
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