Database amortization Interest and other expenses Consolidated net income 7,870 8,700 849,570 $ 246,630 6. Award: 6.25 points On June 30, 2021, Plaster, Inc., paid $828,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $207,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Additional Information for 2021 On December 1, Stucco paid a $45,600 dividend. During the year, Plaster paid $180,000 in dividends. During the year, Plaster issued $813,320 in long-term debt at par Plaster reported no asset purchases or dispositions other than the acquisition of Stucco Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Statement of Cash Flows For the Year Ended December 31, 2021 Cash $ Accounts receivable 54,300 114,900 Inventory 183,600 Land 58,800 Buildings 158,300 Equipment Accounts payable 271,400 (31,700) (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment (3-year remaining life) Database (10-year remaining life) $ 68,000 157.400 At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available: Cash flows from operating activities: $ 0 Cash flows from investing activities: Plaster, Inc. Cash December 31, 2020 38,700 Consolidated December 31, 2021 Cash flows from financing activities 218,500 Accounts receivable (net) 325,800 436,700 Inventory 373,500 647,800 Land 270,000 328,800 Buildings (net) Equipment (net) Database Total assets 220,500 328,800 1,620,000 1,840,500 0 149,530 $ 2,848,500 $ 3,950,830 $ 0 $ 0 Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings Total liabilities and equities $ 72,000 $ 96,300 360,000 1,173,320 Beginning cash, 1/1/21 Ending cash, 12/31/21 $ 0 1,620,000 1,620,000 230,000 796,500 831,010 2,848,500 5 3,950,630 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2021 Revenues Cost of goods sold Depreciation $ 664,100 168,900 $ 1,096,200 References Financial Statements Difficulty: 3 Hard Learning Objective: 06-05 Prepare a consolidated statement of cash flows