Answered step by step
Verified Expert Solution
Question
1 Approved Answer
36. Alford Company and its 80 percent-owned subsidiary. Knight have the following income statements for 2018: Revantes Cost of goods sold Depreciation and amortization Other
36. Alford Company and its 80 percent-owned subsidiary. Knight have the following income statements for 2018: Revantes Cost of goods sold Depreciation and amortization Other expenses Gain on sale of equipment Equity in earnings of Knight Net income Alford Knight SC500.000) $6230.000) 300.000 140.000 40.000 10.000 20.000 20.000 130.000 -0 36.200 -0- $1206.200 S100.000 Additional Information for 2018 Intra-entity inventory Transfers during the year amounted to S90.000. All intra-entity transfers were downstream from Alford to Kight Intra-entitygross profits in inventory at January were $6,000, but at December 31 they are 59.000 Annual excess amortization expensere from the con 1.000 Annual excess amortization expense resulting from the acquisition is $11.000. Knight paid dividends totaling $20.000. The noncontrolling interest's share of the subsidiary's income is $9.800. During the year, consolidated inventory rose by S11.000 while accounts receivable and accounts payable declined by $8.000 and $6.000. respectively. Using either the direct or indirect method, compute net cash flows from operating activities during the period for the business combination
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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