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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
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.
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