Question
Consolidated Statement of Cash Flows Sunny Valley Resort has owned 80 percent of Mountain Lodging, Inc. since Mountain Lodging's inception. The condensed consolidated balance sheets
Consolidated Statement of Cash Flows Sunny Valley Resort has owned 80 percent of Mountain Lodging, Inc. since Mountain Lodging's inception. The condensed consolidated balance sheets of Sunny Valley Resort at December 31, 2012 and 2011 and other relevant information are presented below:
| SUNNY VALLEY RESORT AND SUBSIDIARY Condensed Consolidated Balance Sheets December 31 | ||
|---|---|---|
| (in thousands) | 2012 | 2011 |
| Assets | ||
| Cash | $300,000 | $350,000 |
| Other current assets | 700,000 | 500,000 |
| Plant assets | 2,000,000 | 2,100,000 |
| Accumulated depreciation | (750,000) | (800,000) |
| Goodwill | 150,000 | 165,000 |
| Total assets | $2,400,000 | $2,315,000 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities | $641,000 | $775,000 |
| Noncurrent liabilities | 900,000 | 850,000 |
| Shareholders' equitycontrolling interest | 715,000 | 550,000 |
| Noncontrolling interest | 144,000 | 140,000 |
| Total liabilities and shareholders' equity | $2,400,000 | $2,315,000 |
Additional information for 2012 (in thousands):
- Consolidated net income to the controlling interest is $200,000.
- Mountain Lodging reported net income of $60,000 on its own books, and paid $40,000 in dividends.
- Consolidated depreciation expense was $175,000.
- Plant assets with an original cost of $250,000 were retired from service and scrapped. Goodwill was impaired by $15,000.
- Sunny Valley paid $35,000 in dividends.
Prepare a consolidated statement of cash flows for 2012.
Use negative signs with your answers, when appropriate.
| Sunny Valley Resort and Subsidiary Consolidated Statement of Cash Flows For the year 2012 | ||
|---|---|---|
| (in thousands) | ||
| Cash from operating activities | ||
| Consolidated net income | $ | |
| Add (subtract) items not affecting cash: | ||
| Depreciation expense | $ | |
| Goodwill impairment loss | ||
| Loss on retirement of plant assets | ||
| Changes in current assets and liabilities: | ||
| Increase in other current assets | ||
| Decrease in current liabilities | ||
| Net cash from operating activities | ||
| Cash from investing activities | ||
| Acquisition of plant assets | ||
| Cash from financing activities | ||
| Increase in noncurrent liabilities | ||
| Dividends paid to controlling shareholders | ||
| Dividends paid to noncontrolling shareholders | ||
| Net change in cash | ||
| Plus cash balance, January 1 | ||
| Cash balance, December 31 | $ | |
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Auditing Humor And Other Oxymorons
Authors: Mr Mike Jacka
1st Edition
0991280903, 978-0991280902
