Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am stuck on this question. Can I please get help. Thank you. Prepare a consolidated statement of cash flows for the year ended December

image text in transcribed

I am stuck on this question. Can I please get help. Thank you.

image text in transcribed
Prepare a consolidated statement of cash flows for the year ended December 31, 2020, given the following information: Alpha Company has owned 80% of Bravo Company since January 1, 2018. On the date that Alpha acquired Bravo, equipment with a 10 year life was undervalued by $50,000 and a building with a 20 year life was undervalued by $200,000. On January 1, 2020, Alpha paid $40,000 cash to acquire a 30% interest in Charlie Company. During 2020, Charlie Company generated net income of $50,000 and paid dividends of $10,000. Depreciation expense for the year is as follows: Alpha Company Bravo Company Charlie Company Equipment $8,000 $5,000 $2,000 Buildings $20,000 $15,000 $5,000 In addition, Alpha Company sold a piece of equipment during the year for $15,000. Alpha realized a loss on this sale of $5,000. Consolidated net income for the year was $225,000. Alpha paid dividends of $10,000 and Bravo paid dividends of $7,000 2019 2020 Consolidated Cash $40,000 $252,000 Consolidated Inventory $110,000 $120,000 Consolidated current liabilities $60,000 $80,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis

Authors: K. R. Subramanyam, John J. Wild

10th edition

73379433, 73379432, 978-0073379432

More Books

Students also viewed these Accounting questions

Question

What is your theoretical orientation? (For Applied Programs Only)

Answered: 1 week ago

Question

1. To gain knowledge about the way information is stored in memory.

Answered: 1 week ago