Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances

Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses) Plaster, Inc., and Consolidated Subsidiary Stucco Retained earnings, 1/11 2019 $(1,240,000) 2020 Cash Net income Retained earnings. 12/31 Accounts receivable (524,000) $(1,524,000) (676,000) $(1,524,000) $(1,760,000) $360,000 680,000 Inventory Buildings and equipment (net) 840,000 2,600,000 $480,000 600,000 1,440,000 2,840,000 Databases 680,000 Accounts payable $(640,000) 620,000 $(440,000) Bonds payable (1,640,000) (2,080,000) Noncontrolling interest in Stucco (168,000) (244,000) Common stock (440.000) (560,000) Revenues Additional paid-in capital Cost of goods sold Depreciation and amortization Loss on sale of equipment 2,440,000 400,000 (748,000) (896,000) $(3,600,000) $(4,120,000) 2,600,000 480,000 120.000 Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense Consolidated net income to noncontrolling interest to parent company Additional Information for 2020: 2,440,000 2,600,000 400,000 480.000 -0- 120,000 160,000 160,000 76,000 $(524,000) 84.000 $(676,000) The subsidiary purchased a building on 10 April for $820,000 in cash Amortization of databases amounts to $60,000 per year. The parent issued stock for cash on 1 July The parent sold equipment with a cost of $320,000 but a $160,000 book value for cash on August 20 During the year, the subsidiary paid dividends of $40,000. Both parent and subsidiary pay dividends in the same year as declared The parent issued bonds during the year for cash. The only changes affecting retained earnings are net income and cash dividends paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method. ALT+F10 (PC) or ALT+FN+F10 (Mac)

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

Step: 3

blur-text-image

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 Services And Markets

Authors: Dr. Punithavathy Pandian

8125931201, 978-8125931201

More Books

Students also viewed these Accounting questions