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When I try to submit, it Says the Answer is incomplete On June 30, 2021, Plaster, Inc., paid $868,000 for 80 percent of Stucco Company's
When I try to submit, it Says the Answer is incomplete
On June 30, 2021, Plaster, Inc., paid $868,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $217,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $ 56,800 120,400 192,600 61,800 166,300 284,900 (33,200) (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment (3-year remaining life) Database (10-year remaining life) $ 71,000 164,400 At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available: Plaster, Inc. December 31, 2020 $ 40,200 338,300 388,000 280,500 229,000 1,682,500 Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Database Total assets Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings Total liabilities and equities Consolidated December 31, 20 21 $ 227,000 453,700 672,800 342,300 345,300 1,913,000 156,180 $ 4, 110,280 $ 100,300 1,089,620 1,687,500 239,500 993,360 $ 4,110,280 $ 2,958,500 $ 75,000 375,000 1,687,500 0 821,000 $ 2,958,500 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2021 Revenues $ 1,140,200 Cost of goods sold $ 690,600 Depreciation 175,400 Database amortization 8,220 Interest and other expenses 9,200 883,420 Consolidated net income $ 256, 780 Additional Information for 2021 On December 1, Stucco paid a $49,600 dividend. During the year, Plaster paid $52,000 in dividends. During the year, Plaster issued $714,620 in long-term debt at par. Plaster reported no asset purchases or dispositions other than the acquisition of Stucco. Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Consolidated net income $ 256.780 175,400 Depreciation expense Amortization expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Net cash flow provided by operating activities Cash flows from investing activities: Purchase of Stucco Company assets 8,220 5,000 (92,200)| (7,900) 88,520 345,300 $ (811,200) (811,200) Net cash flow provided by financing activities Cash flows from financing activities Dividends paid Issue long-term debt (61,920) 714,620 Net cash flow provided by financing activities $ 652.700 186,800 $ Prey 1 of 2 Next >Step by Step Solution
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