Question
Parent plc obtained control of Subsidiary plc on 12 February 20X1, when Subsidiary plc held 28,000 in accounts receivable. At 31 December 20X1, Parent and
Parent plc obtained control of Subsidiary plc on 12 February 20X1, when Subsidiary plc held £28,000 in accounts receivable.
At 31 December 20X1, Parent and Subsidiary had accounts receivable of £90,000 and £35,000, respectively.
At 1 January 20X1, Parent had £75,000 in accounts receivable.
In relation to Parent plc’s consolidated statement of cash flow, what is the impact of the change in accounts receivable for the financial year ending 31 December 20X1?
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Advanced Financial Accounting
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
7th edition
132928930, 978-0132928939
