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 $15,000, respectively, in 20X8 Required Prepare a worksheet to develop a consolidated statement of cash flows for 20X8 using the indirect method of computing cash flows from operations Prepare a consolidated statement of cash flows for 20X8 Use Excel formulas to make or evidence each of your calculations of all dollar amounts Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons Item Jan 1, 20X8 50,000 Dec 31, 20X8 2$ Cash 80,000 Accounts Receivable 75,000 85,000 90,000 100,000 Inventory Land 60,000 300,000 (90,000) 12,000 $ 492,000 80,000 350,000 (120,000) 10,000 Buildings and Equipment Less Accumulated Depreciation Patents Total Assets 590,000 Accounts Payable 40,000 58,000 Wages Payable Notes Payable Common Stock ($5 par value) Retained Earnings 20,000 150,000 16,000 175,000 100,000 162,000 100,000 218,000 Noncontrolling Interest 20,000 23,000 Total Liabilities and Equities $ 492,000 590,000

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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

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:

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

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

Required:

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

Item Jan 1, 20X8 50,000 Dec 31, 20X8 2$ Cash 80,000 Accounts Receivable 75,000 85,000 90,000 100,000 Inventory Land 60,000 300,000 (90,000) 12,000 $ 492,000 80,000 350,000 (120,000) 10,000 Buildings and Equipment Less: Accumulated Depreciation Patents Total Assets 590,000 Accounts Payable 40,000 58,000 Wages Payable Notes Payable Common Stock ($5 par value) Retained Earnings 20,000 150,000 16,000 175,000 100,000 162,000 100,000 218,000 Noncontrolling Interest 20,000 23,000 Total Liabilities and Equities $ 492,000 590,000