Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a
Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and subsidiary pay dividends in the same year as declared. Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2018. (Use indirect method) (Negative amounts and amounts to be deducted should be indicated by a minus sign.) BOLERO COMPANY AND CONSOLIDATED SUBSIDIARY RIVERA Consolidated Statement of Cash Flows Year Ending December 31, 2018 Cash from operating activities: Consolidated net income Adjustment from accrual to cash Depreciation and amortization Gain on sale of building Decrease in accounts receivable Increase in inventory Decrease in accounts payable Net cash flow from operating activities Cash flows from investing activities Sale of building Purchase of equipment Net cash flow from investing activities Cash flows from financing activities Dividends declared Issuance of bonds Issuance of common stock Net cash flow from financing activities et increase in cash during 2018 Cash, January 1, 2018 Cash, December 31, 2018 0
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