Consolidated Cash Flow Statement

P Corporation acquired 80 percent ownership of S Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of S Company. Consolidated balance sheets at January 1, 20X8, and December 31, 20X8, are as follows:

The consolidated income statement for 20X8 contained the following amounts:

P and S paid dividends of $25,000 and $15,000, respectively, in 20X8.

Required:

1. Prepare a worksheet to develop a consolidated statement of cash flows for 20X8 using the indirect method of computing cash flows from operations.
2. Prepare a consolidated statement of cash flows for 20X8.

Use Excel formulas to make or evidence each of your calculations of all dollar amounts. Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons. Use the tab function at the bottom of the Excel file to complete the assignment.

Item Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Patents Total Assets Accounts Payable Wages Payable Notes Payable Common Stock ($5 par value) Retained Earnings Noncontrolling Interest Total Liabilities and Equities Jan 1, 20X8 $ 50,000 75,000 85,000 60,000 300,000 (90,000) 12,000 $ 492,000 40,000 20,000 150,000 100,000 162,000 20,000 $ 492,000 Dec 31, 20X8 $ 80,000 90,000 100,000 80,000 350,000 (120,000) 10,000 590,000 $ 58,000 16,000 175,000 100,000 218,000 23,000 $ 590,000 $ 400,000 $ Sales Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Amortization Expense Other Expenses Consolidated Net Income Income to Noncontrolling Interest Income to Controlling Interest 172,000 45,000 30,000 12,000 2,000 52,000 $ (313,000) 87,000 (6,000) 81,000 $ Item Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Patents Total Assets Accounts Payable Wages Payable Notes Payable Common Stock ($5 par value) Retained Earnings Noncontrolling Interest Total Liabilities and Equities Jan 1, 20X8 $ 50,000 75,000 85,000 60,000 300,000 (90,000) 12,000 $ 492,000 40,000 20,000 150,000 100,000 162,000 20,000 $ 492,000 Dec 31, 20X8 $ 80,000 90,000 100,000 80,000 350,000 (120,000) 10,000 590,000 $ 58,000 16,000 175,000 100,000 218,000 23,000 $ 590,000 $ 400,000 $ Sales Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Amortization Expense Other Expenses Consolidated Net Income Income to Noncontrolling Interest Income to Controlling Interest 172,000 45,000 30,000 12,000 2,000 52,000 $ (313,000) 87,000 (6,000) 81,000 $