Ornorat. Question 1 a) Identify the three classifications of the statement of cash flows. Why are these (10 marks) classifications important? (4 marks) b) Fabulous Ltd provides you with the following information: Sales for the year Discounts provided during the year to customers for early payment $800000 $20 000 $10 000 $180 000 $160 000 $18 000 $16 000 Doubtful debts expense for the year Opening balance of accounts receivable Closing balance of accounts receivable Opening balance of the allowance for doubtful debts Closing balance of the allowance for doubtful debts Required How much cash has been received from customers during the year? (6 marks) (10 marks) uestion 2 Required How much cash has been received from customers during the year? (6 marks) Question 2 The Parent company acquires all issued capital of the subsidiary company for a consideration of $1000000 cash and 800000 shares each valued at $1.25. The summary statement of financial position of the subsidiary company immediately following the acquisition is: (10 marks) Fair value of assets acquired Fair value of liabilities acquired Total shareholders' equity of the subsidiary company Retained earnings of the subsidiary company $2640000 $720000 $800000 $1120000 Required: (i) Pass the necessary journal entry to record the acquisition (3 marks) (i) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition. (2 marks) (ii) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company. (3 marks) (iii) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1000000 cash and 400000 shares each valued at $1.25. (2 marks) Ornorat. Question 1 a) Identify the three classifications of the statement of cash flows. Why are these (10 marks) classifications important? (4 marks) b) Fabulous Ltd provides you with the following information: Sales for the year Discounts provided during the year to customers for early payment $800000 $20 000 $10 000 $180 000 $160 000 $18 000 $16 000 Doubtful debts expense for the year Opening balance of accounts receivable Closing balance of accounts receivable Opening balance of the allowance for doubtful debts Closing balance of the allowance for doubtful debts Required How much cash has been received from customers during the year? (6 marks) (10 marks) uestion 2 Required How much cash has been received from customers during the year? (6 marks) Question 2 The Parent company acquires all issued capital of the subsidiary company for a consideration of $1000000 cash and 800000 shares each valued at $1.25. The summary statement of financial position of the subsidiary company immediately following the acquisition is: (10 marks) Fair value of assets acquired Fair value of liabilities acquired Total shareholders' equity of the subsidiary company Retained earnings of the subsidiary company $2640000 $720000 $800000 $1120000 Required: (i) Pass the necessary journal entry to record the acquisition (3 marks) (i) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition. (2 marks) (ii) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company. (3 marks) (iii) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1000000 cash and 400000 shares each valued at $1.25. (2 marks)