Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10.5 points Save Arove Plaster, Inc holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019
10.5 points Save Arove 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 Retained earnings, 1/1 2019 $(1,240,000) 2020 $(1,524,000) Net income (524,000) (676,000) Retained earnings, 12/31 $(1,524,000) $(1,760,000) Cash $360,000 $480,000 Accounts receivable 680,000 600,000 Inventory 840,000 1,440,000 Buildings and equipment (net) 2,600,000 2,840,000 Databases 680,000 620,000 Accounts payable $(640,000) 5(440,000) Bonds payable (1,640,000) (2.080,000) Activate Window Noncontrolling interest in Stucco (168,000) (244,000) Common stock (440,000) (560,000) Additional paid-in capital (748,000) (896,000) Revenues $(3,600,000) $(4,120,000) SONY Additional paid-in capital Revenues Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense Consolidated net income to noncontrolling interest to parent company Additional Information for 2020: (748,000) $(3,600,000) (896,000) $(4,120,000) 2,440,000 2,600,000 400,000 480,000 -0- 120,000 160,000 160,000 76,000 84,000 $(524,000) $(676,000) The subsidiary purchased a building on 10 April for $820,000 in cash Amortization of databases amounts to $60,000 per year. The parent issued stock for cash on 1 July The parent sold equipment with a cost of $320,000 but a $160.000 book value for cash on August 20 During the year, the subsidiary paid dividends of $40,000. Both parent and subsidiary pay dividends in the same year as declared 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)) Activate BIVS Paragraph v XX Arial 10pt " SONY x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started