Question
Tower Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December
| Tower Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December 31, 2014. Tower owns 80 percent of Network Corporation's stock, which it acquired at underlying book value on November 1, 2011. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Network Corporation's book value. The following information is available: Consolidated net income for 2014 was $160,000. Network reported net income of $50,000 for 2014. Tower paid dividends of $30,000 in 2014. Network paid dividends of $10,000 in 2014. Tower issued common stock on February, 18, 2014, for a total of $100,000. Consolidated wages payable decreased by $6,000 in 2014. Consolidated depreciation expense for the year was $15,000. Consolidated accounts receivable decreased by $20,000 in 2014. Bonds payable of Tower with a book value of $102,000 were retired for $100,000 on December 31, 2014. Consolidated amortization expense on patents was $10,000 for 2014. Tower sold land that it had purchased for $75,000 to a non-affiliate for $80,000 on June 10, 2014. Consolidated accounts payable decreased by $7,000 during 2014. Total purchases of equipment by Tower and Network during 2014 were $180,000. Consolidated inventory increased by $36,000 during 2014. There were no intercompany transfers between Tower and Network in 2014 or prior years except for Network's payment of dividends. Tower uses the indirect method in preparing its cash flow statement. Based on the preceding information, what amount will be reported in the consolidated cash flow statement as net cash provided by operating activities for 2014? |
| Based on the preceding information, what was the change in cash balance for the consolidated entity for 2014?
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