Required:

1). Prepare the consolidated balance sheet.

2). Prepare the indirect cash flow statement.

ACT506 Portfolio Project Option#2 Push Corporation and Subsidiaries Consolidated Statement of Cash Flows For the Year Ended December 31, 20x7 (Indirect Method) Additional Information Information for Cash Flow Statement completion Push Consolidated Income Statement 12/31/20x7 12/31/20x7 Revenue Gain on Sale of Land Loss on Sale of Equipment Cost of Goods Sold Depreciation Expense Other Expenses Total expenses 950,000 50,000 -5,000 500,000 100,000 200,000 800,000 Consolidated Income Parent's Equity income from Subsidiary Subsidiary Net Income 20x6 Consolidated Net Income 195,000 100,000 -100,000 195,000 B. Retained Earnings Statement Parent's beginning R.E from operations Parent's Income from operations Parent's Dividend to stockholders Consolidated Retained Earnings Push Corporation Balance Sheet Dates Cash Acct Rec Inventories Land Land Buildings and Equipment Goodwill Total Debits Acc Depreciation Accts Payable Bonds Payable Common Stock Paid in Capital Retained Earnings 12/31/20x6 150,000 200,000 150,000 25,000 100,000 500,000 100,000 1,225,000 200,000 50,000 150,000 200,000 125,000 500,000 1,225,000 A. Push Corporation has 100% control of Summer Corporation on 01/02/20x7. B. Push Corporation has $195,000 Consolidated Income for 20x7. C. Push Corporation pays a $10,000 Dividend to stockholders. D. Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7. E. Push Corporation sells land that it purchased in 20X1 for $50,000 to nonaffiliated for $100,000. F. Summer Corporation purchases additional equipment for 200,000 at end of 20x7. G. Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7. H. Common Stock of $10.00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7. I. Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000. K. Land with a book value of $25,000 was sold for $20,000, a loss of $5,000. L. Increase in Cash and Increase or decrease in cash balance. Done after all entries performed. M. Account Receivable increased $100,000. N. Inventory increased $100,000. O. Increase in Accts Payable $100,000. P. Accumulated Depreciation increased $100,000. Q. Goodwill did not change in year. R. Paid In Capital did not change in year. Note: No Item J=intentionally omitted Debit Push Corporation Balance Sheet Dates Cash Acct Rec Inventories Land Land Buildings and Equipment Good =will 12/31/20x6 150,000 200,000 150,000 25,000 100,000 500,000 100,000 Total Debits 1,225,000 Accounts Depreciation Accts Payable Bonds Payable Common Stock Paid in Capital Retained Earnings 200,000 50,000 150,000 200,000 125,000 500,000 Credit 12/31/20x7 140,000 100,000 100,000 25,000 50,000 350,000 10,000 300,000 250,000 0 50,000 850,000 100,000 1,560,000 100,000 100,000 150,000 100,000 10,000 195,000 1,225,000 300,000 150,000 0 300,000 125,000 685,000 1,560,000 A. Push Corporation has 100% control of Summer Corporation on 01/02/20x7. B. Push Corporation has $195,000 Consolidated Income for 20x7. C. Push Corporation pays a $10,000 Dividend to stockholders. D. Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7. E. Push Corporation sells land that it purchased in 20x7 for $50,000 to nonaffiliated for $100,000. F. Push Corporation purchases additional equipment for 200,000 at the end of 20x7. G. Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7. H. Common Stock of $10.00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7. I. Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000. K. Land with a book value of $25,000 was sold for $20,000, a loss of $5,000. L. Increase in Cash and Increase or decrease in cash balance. Done after all entries performed. M. Account Receivable increased $100,000. N. Inventory increased $100,000. O. Increase in Accts Payable $100,000. P. Accumulated Depreciation increased $100,000. Q. Goodwill did not change in year. R. Paid In Capital did not change in year. Note: No Item J=intentionally omitted Entries to Perform: A No entry required for cash flow statement. Assumption is $100,000 Goodwill is after Eliminating Entry for Consolidation. B Consolidated Income on Retained Earnings C. R.E D No entry required for cash flow statement. In Consolidation process, intercompany transactions are removed. E. Increase in Cash Land Dividend Cash Flows form Operating Activities Consolidated Income Depreciation Expense Gain on Sale of Land Loss on Sale of Land Increase in Acct Receivable Income in Inventory Income in Accts payable Cash Flows from Investing Activities Acquisition of Equipment Acquisition of Equipment Sale of Land Sale of Land (loss) Cash Flows from Financing Activities Dividends paid to Stockholders Payment of Bond Payable Common Stock Decrease in Cash 195,000 100,000 50,000 5,000 100,000 100,000 Gain on Sale of land Land 100,000 F Additional Equipment G. Additional Equipment Acquisition of Equipment H. Increase in cash flow financing Common Stock I. Long Term Bonds Increase in financing retirement K. Increase in financing Loss on sale of Equipment Equipment L. Cash at end of cash flow process calculation Increase in cash M Increase in Acct Rec Acct Rec N. Increase in Investment increase in inventory O. Increase in Accts payable Accounts Payable 150,000 200,000 100,000 20,000 Acquisition of Equipment 10,000 150,000 100,000 1,330,000 140,000 1,470,000 Push Corporation and Subsidaries Consolidated Statement of Cash Flows For the Year Ended December 31, 20x7 (Indirect Method) Cash Flows from Operating Activities Consolidated Net Income Noncash expenses, revenues,losses and gains included in income: Depreciation Gain on sale of Land Loss on sale of land Changes in Operating Assets and Liabilities Increase in Acct Recievable Increase in Inventory increase in accts payable Net Cash provided by Operating Activities Cash Flows from Investing Activities Acquistion of Equipment Sale of Land Sale of Land B. Net Cash used in Investing Activities Cash Flows from Financing Activities Dividends Paid Cash paid for Bond Retirement Cash received for Stock Issuance Net Cash used in Financing Activities Net Increase in Cash Cash at the beginning of the Year Cash at the end of the Year