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10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020
10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminas 1/1 $/630.000il econ mani Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained earnings, 1/1 Net income Retained earnings, 12/31 Cash $(620,000) $(762,000) (262,000) (338,000) $(762,000) $(880,000) $180,000 $240,000 Accounts receivable Inventory 340,000 300,000 420,000 720,000 Buildings and equipment (net) 1,300,000 1,420,000 Bonds payable Databases Accounts payable Noncontrolling interest in Stucco Common stock Additional paid-in capital Revenues 340,000 310,000 $(320,000) $(220,000) (820,000) (1,040,000) (84,000) (122,000) (220,000) (280,000) (374,000) (448,000) $(1,800,000) $(2,060,000) Cost of goods sold 1,220,000 1,300,000 Depreciation and amortization 200,000 240,000 Loss on sale of equipment -0- 60,000 Interest expense Consolidated net income: to noncontrolling interest to parent company 80,000 80,000 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: The subsidiary purchased a building on 10 April for $410,000 in cash. Amortization of databases amounts to $30,000 per year. The parent issued stock for cash on 1 July. The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. o The parent issued bonds during the year for cash. The only changes affecting retained earnings are net income and cash dividends paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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