#6

Point Company holds 80 percent ownership of Shoot Company. The consolidated bolance sheets as of December 31 , 20x 3 , and December 31,204, are os follows: The 204 consolidsted income statement contoined the following omounts: Point ocquired its investment in Shoot on Jonuary 1, 20X2, for $176,000. At that date, the foir volue of the noncontrolling interest was $44,000, and Shoot reported net ossets of $150,000. A total of $40,000 of the differential was assigned to goodwill. The remainder of the differentiol wos assigned to equipment with o remaining life of 20 years from the dote of combination. Point sold $100,000 of bonds on December 31,204, to assist in generating additional funds. Shoot reported net incorne of $35,000 for 204 and poid dividends of $15,000. Point reported 204 equity-method net income of $80,000 ond paid dividends of $25,000. Required: a. Prepore o worksheet to develop o consolidated stotement of cash flows for 204 using the indirect method of computing cosh flows from operations. b. Prepore o consolidated statement of cosh flows for 204. Prepare a worksheet to develop a consolidated statement of cash flows for 204 using the direct methid of computing tash flows from operations. Wote: Values in the first two columns (the "parent" and "scusidiary" balances) that are to be tedurted should be Indicated with a minus sign, while all values in the "Consolidation Entries" columns sticuld bet oritertal as positive waiuss. For accounts where multiple adjustirg entries are required, cornbine all debit entries inter one almount and knter this dinount in the debit column of Prepare a consolidated statement of cash flows for 204. Note: Amounts to be deducted should be indicated with a minus sign