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This is a cash flow question from my Advanced Accounting 1 course. please provide a clear full step by step solution as soon possible!! Thank
This is a cash flow question from my Advanced Accounting 1 course. please provide a clear full step by step solution as soon possible!! Thank you!
P Inc. owns 80 percent of S Corporation. The consolidated financial statements of P are shown below: P Inc. Consolidated Balance Sheet December 31, Year 4 Year Year-3 Cash $118.600 $49,800 Accounts receivable 115.000 126,000 Inventory 232.000 192,000 Land 36000 114,000 Building and equipment 98 000 510.000 Accumulated depreciation (205.000 (168.000) Database 16800 19,200 Total Assets 5961,400 5843,000 Accounts payable $54,400 $31,200 Acered liabilities 7,200 27,000 Bonds payable 320.000 240,000 Bond premium 9.600 10.900 Common shares 180,000 180,000 Retained camings 363.480 330,000 Non-controlling interest 26.720 24,000 Total liabilities and equity 5961,400 5843,000 P Inc. Consolidated Income Statement For the year ended December 31, Year 4 Sales 590.000 Cost of Sales $535.000 Selling expenses 144.600 Administrative expenses 159.800 Interest expenses 31.400 Income tax 37000 907 800 Net Income 552,200 Attributable to Parent's shareholders $47. 0 Non-controlling interest 4.320 P Inc. purchased its 80 percent interest in Scorporation, on January 1, year 2, for $ 114,000 when Shad net assets of $90,000. The acquisition differential was allocated $24,000 to data bases ( 10-year life), with the balance allocated to equipment (20-year life). P issued S 80'000 in bonds on December 31, year 4. S reported a net income of $ 24,000 for year 4 and paid dividend of $8,000. Selling and administrative expenses includes the following: Depreciation of building and equipment $37,000 Data base amortization 2.400 Loss on land sale 2.000 P reported a Year 4 equity method income of $47,880 and paid dividends of $14,400. Required: 1. Prepare a consolidated cash flow statement for year 4 Step by Step Solution
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