Comprehensive cash flow, indirect method. Presented below are the consolidated workpaper balances of Bush, Inc., and its subsidiary, Dorr Corporation, as of December 31, 2016 and 2015:

Additional information:

a. On January 20, 2016, Bush, Inc., issues 10,000 shares of its common stock for land having a fair value of $215,000.

b. On February 5, 2016, Bush reissues all of its treasury stock for $44,000.

c. OnMay 15, 2016, Bush pays a cash dividend of $58,000 on its common stock.

d. On August 8, 2016, equipment is purchased for $127,000.

e. On September 30, 2016, equipment is sold for $40,000. The equipment costs $62,000 and has a net book value of $34,000 on the date of the sale.

f. On December 15, 2016, Dorr Corporation pays a cash dividend of $50,000 on its common stock.

g. Deferred income taxes represent timing differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial reporting.

h. Net income for 2016 is as follows:

Controlling interest in consolidated net income. . . . . . . . . . . . . . . . $201,000

Dorr Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000

i. Bush, Inc., owns 70% of Dorr Corporation. There is no change in ownership interest in Dorr during 2015 and 2016. There are no intercompany transactions other than the dividend paid to Bush by its subsidiary.

Prepare the statement of cash flows for the consolidated company using the indirect method. A cash analysis worksheet should be prepared to aid in the development of the statement. Any other supporting schedules should be in good form.

 

Net Change Incr. (Decr.) Assets 2016 2015 Cash $ 313,000 $ 195,000 $118,000 Marketable equity securities (at cost). Allowance to reduce marketable equity securities to market ... Accounts receivable (net) 175,000 175,000 (13,000) 418,000 595,000 385,000 755,000 (24,000) 440,000 525,000 170,000 690,000 11,000 (22,000) 70,000 215,000 65,000 Inventories. Land.. Plant and equipment. Accumulated depreciation Goodwill ... (199,000) 60,000 (145,000) (54,000) 60,000 Total assets. $2,489,000 $2,086,000 $403,000 Liabilities and Stockholders' Equity $ 150,000 $ 150,000 474,000 450,000 32,000 Current portion of long-term note.. Accounts payable and accrued liabilities. Note payable, long term. Deferred income taxes... Noncontrolling interest in net assets of subsidiary... Common stock ($10 par).. Additional paid-in capital in excess of par Retained earnings .. Treasury stock (at cost).. Total liabilities and stockholders' equity 121,000 (150,000) 595,000 300,000 44,000 179,000 580,000 303,000 12,000 18,000 100,000 123,000 161,000 480,000 180,000 338,000 195,000 143,000 (36,000) 36,000 $2,489,000 $2,086,000 $ 403,000