Question
Comparative consolidated balance sheet data for BIG Co and its 65% owned subsidiary LITTLE co are as follow: Item 2020 2019 Cash 12,000 25,000 Notes
Comparative consolidated balance sheet data for BIG Co and its 65% owned subsidiary LITTLE co are as follow:
Item | 2020 | 2019 |
Cash | 12,000 | 25,000 |
Notes receivables (net) | 60,000 | 43,000 |
Supplies inventory | 90,000 | 50,000 |
PPE (net) | 100,000 | 110,000 |
Patent | 90,000 | 105,000 |
Totals | 352,000 | 352,000 |
Accounts payable | 80,000 | 68,000 |
Notes payable LT | 5000 | 30,000 |
Non controlling interests | 44,000 | 40,000 |
Common stock 10 $ par | 205,000 | 205,000 |
Retained earnings | 18,000 | (10,000) |
Totals | 352,000 | 352,000 |
Additional information :
The consolidated net income for 2020 is 50,000 $.
Little paid 10,000 $ in dividends during the year. Big paid 17,000 $ in dividends.
Little sold 16,000 $ of supplies to Big during the year.
There were no sales or purchases of long term assets during the year.
Required :
Compute the consolidated cash-flows from operating activities using indirect method.
Compute the consolidated cash-flows from investing activities
Compute the consolidated cash-flows from financing activities.
Step by Step Solution
3.52 Rating (165 Votes )
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