{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T17:09:18-04:00", "answer_date": "2024-05-25 17:09:18", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1698416", "url": "\/study-help\/questions\/bolero-company-holds-80-percent-of-the-common-stock-of-1698416", "question_creation_date_js": "2024-05-25T17:09:18-04:00", "question_creation_date": "May 25, 2024 05:09 PM", "meta_title": "[Solved] Bolero Company holds 80 percent of the co | SolutionInn", "meta_description": "Answer of - Bolero Company holds 80 percent of the common stock of Rivers, Inc., and 40 percent of this subsidiary's convertible b | SolutionInn", "meta_keywords": "bolero,company,holds,80,percent,common,stock,rivers,inc.,40,subsidiary,s", "question_title_h1": " Bolero Company holds 80 percent of the common stock of Rivers, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial", "question_title": " Bolero Company holds 80 percent of the common stock of Rivers,", "question_title_for_js_snippet": "Bolero Company holds 80 percent of the common stock of Rivers, Inc , and 40 percent of this subsidiary's convertible bonds The following consolidated financial statements are for 2020 and 2021 (credit balances indicated by parentheses) Bolero Company and Consolidated Subsidiary Rivera Revenues Cost of goods sold Depreciation and amortization 2828 (925,000) 615,000 105,000 2821 $ (1,055,000) 655,000 130,000 e 45,000 (35,000) 45,000 (260,000) 26,000 $(234,000) Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1 1 Net income Dividends declared Retained earnings, 12 31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets Accounts payable Bonds payable Noncontrolling interest in Rivera Common stock Additional paid in capital Retained earnings Total liabilities and equities (160,000) 24,000 115,000 $(136,000) $ (315,000) (136,000) 65,000 $ (386,000) (234,000) $(386,000) $ (505,000) 95,000 $ 190,000 180,000 155,000 215,000 370,000 655,000 180,000 $1,325,000 $ (157,000) (415,000) (47,000) (128,080) (192,000) 725,000 160,000 $1,600,000 $ (120,000) (530,000) (66,000) (145,000) (234,000) (386,000) (585,000) $ (1,325,000) $ (1,600,000) Additional Information for 2021 The parent issued bonds during the year for cash Amortization of databases amounts to $20,000 per year The parent sold a building with a cost of $90,000 but a $45,000 book value for cash on May 11 The subsidiary purchased equipment on July 23 for $225,000 in cash Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $35,000 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, 2021 Use the indirect method to compute cash flow from operating activities (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, 2021 Cash from operating activities Adjustment from accrual to cash Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Cash, January 1, 2021 Cash, December 31, 2021", "question_description": "\"image", "transcribed_text": "Bolero Company holds 80 percent of the common stock of Rivers, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2020 and 2021 (credit balances indicated by parentheses): Bolero Company and Consolidated Subsidiary Rivera Revenues Cost of goods sold Depreciation and amortization 2828 (925,000) 615,000 105,000 2821 $ (1,055,000) 655,000 130,000 e 45,000 (35,000) 45,000 (260,000) 26,000 $(234,000) Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1\/1 Net income Dividends declared Retained earnings, 12\/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets Accounts payable Bonds payable Noncontrolling interest in Rivera Common stock Additional paid-in capital Retained earnings Total liabilities and equities (160,000) 24,000 115,000 $(136,000) $ (315,000) (136,000) 65,000 $ (386,000) (234,000) $(386,000) $ (505,000) 95,000 $ 190,000 180,000 155,000 215,000 370,000 655,000 180,000 $1,325,000 $ (157,000) (415,000) (47,000) (128,080) (192,000) 725,000 160,000 $1,600,000 $ (120,000) (530,000) (66,000) (145,000) (234,000) (386,000) (585,000) $ (1,325,000) $ (1,600,000) Additional Information for 2021 The parent issued bonds during the year for cash. Amortization of databases amounts to $20,000 per year. The parent sold a building with a cost of $90,000 but a $45,000 book value for cash on May 11. The subsidiary purchased equipment on July 23 for $225,000 in cash. Late in November, the parent issued stock for cash. During the year, the subsidiary paid dividends of $35,000. 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, 2021. Use the indirect method to compute cash flow from operating activities. (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, 2021 Cash from operating activities: Adjustment from accrual to cash: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Cash, January 1, 2021 Cash, December 31, 2021", "related_book": { "title": "Financial Accounting", "isbn": "78111021, 978-0078111020", "edition": "7th Edition", "authors": "LibbyShort", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/72.jpg", "uri": "\/textbooks\/financial-accounting-7th-edition-72", "see_more_uri": "" }, "free_related_book": { "isbn": "1799815463", "uri": "\/textbooks\/enhanced-heat-transfer-mechanism-of-nanofluid-mql-cooling-grinding-1st-edition-9781799815464-9781799815495", "name": "Enhanced Heat Transfer Mechanism Of Nanofluid MQL Cooling Grinding", "edition": "1st Edition" }, "question_posted": "2024-05-25 17:09:18", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/mr-d-duck-a-sole-trader-has-not-maintained-proper-292729", "description": "Mr. D. 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