what is taxes payable and deferred tax payable?

On January 1, 20X1. Parent purchased shares of Subsidiary The accountant started the financial statements below, but could not finish them. She also could not produce a statement of cash flows. You have decided to help her out because you are the wel trained Kangaroo and therefore an SCF expert. Note, you are NOT required to produce the direct method of disclosing operating cash flows. The Company uses the EQUITY method of accounting for this investment Shares of Subsidiary outstanding B0.000 100% of the amortion of excess 9.000 Shares of Subsidiary acquired 8.000 Subsidiasis dividends in ax 1 4.000 Cost per share $ 4.50 Tax 30.00 Subsidiary's income in 20X1 25,000 Estimated to penent 7.000 Tax depreciation 56.000 Parent Company Income Statement for the year ended December 31, 20X1 Statement of Retained Earings Sales IS 755.000 for the year ended December 31, 20X1 Income from Subsidiary + 25,000 Beginning retained earnings 5 27.200 Cost of goods sold 337,000 Net income +72.00 Salary expense 291,000 Dividends (5.600) Amortization expense 4,000 Ending retained earnings 193,700 Depreciation expense 37 000 Interest expense B.000 Pretax income 103,000 Tax expense (03.000 x 30% 30,900 Net income E12,00 Taxes Payable 13,000 Parent Company Balance Sheet as of December 31 Cash 13,000 7000 Absolute Value of Charge 20x0 49.600$ 34 300 19,800 4210 2510 Accounts receivable Inventory Investment in Subsidiary Equipment Accumulated depreciation 338.900 422.600 (145,400) 36,000 Patent 40,000 Land Total 20X1 32.2001 38.510 17,190 statement of Cash Flows 0 36000 36000 for the year ende bec 31, 20% ] 21.700 Cash cateczek 755,000+4210 (108,400) 37.000 from sales = 751,210 337,000+ 2W800 9,60 419.700 500 400 - 366,410 flash paid 291,000 for salaries 13,000 77 Cash paid for interest 81000 16,900? 29 Cash pard 30,900+? 400 for taxes 45,500 4.000 Cash pard 17.300 for inventory 62.800 $ $ 89.600 Accounts payable Taxes payable 116.400 26.800 1.100 700 156,200 11,900 Deferred taxes payable - Depreciation Dividends payable Noles payable Common stock ($1 par value) Additional pald-in capital Retained earnings Total $ 144,300 52.900 47,200 5.700 Operating 68,500 76,700 8200 Cash flows 27.200 93.700 419,700 Page 3 On January 1, 20X1. Parent purchased shares of Subsidiary The accountant started the financial statements below, but could not finish them. She also could not produce a statement of cash flows. You have decided to help her out because you are the wel trained Kangaroo and therefore an SCF expert. Note, you are NOT required to produce the direct method of disclosing operating cash flows. The Company uses the EQUITY method of accounting for this investment Shares of Subsidiary outstanding B0.000 100% of the amortion of excess 9.000 Shares of Subsidiary acquired 8.000 Subsidiasis dividends in ax 1 4.000 Cost per share $ 4.50 Tax 30.00 Subsidiary's income in 20X1 25,000 Estimated to penent 7.000 Tax depreciation 56.000 Parent Company Income Statement for the year ended December 31, 20X1 Statement of Retained Earings Sales IS 755.000 for the year ended December 31, 20X1 Income from Subsidiary + 25,000 Beginning retained earnings 5 27.200 Cost of goods sold 337,000 Net income +72.00 Salary expense 291,000 Dividends (5.600) Amortization expense 4,000 Ending retained earnings 193,700 Depreciation expense 37 000 Interest expense B.000 Pretax income 103,000 Tax expense (03.000 x 30% 30,900 Net income E12,00 Taxes Payable 13,000 Parent Company Balance Sheet as of December 31 Cash 13,000 7000 Absolute Value of Charge 20x0 49.600$ 34 300 19,800 4210 2510 Accounts receivable Inventory Investment in Subsidiary Equipment Accumulated depreciation 338.900 422.600 (145,400) 36,000 Patent 40,000 Land Total 20X1 32.2001 38.510 17,190 statement of Cash Flows 0 36000 36000 for the year ende bec 31, 20% ] 21.700 Cash cateczek 755,000+4210 (108,400) 37.000 from sales = 751,210 337,000+ 2W800 9,60 419.700 500 400 - 366,410 flash paid 291,000 for salaries 13,000 77 Cash paid for interest 81000 16,900? 29 Cash pard 30,900+? 400 for taxes 45,500 4.000 Cash pard 17.300 for inventory 62.800 $ $ 89.600 Accounts payable Taxes payable 116.400 26.800 1.100 700 156,200 11,900 Deferred taxes payable - Depreciation Dividends payable Noles payable Common stock ($1 par value) Additional pald-in capital Retained earnings Total $ 144,300 52.900 47,200 5.700 Operating 68,500 76,700 8200 Cash flows 27.200 93.700 419,700 Page 3