Answered: 2018 2017 Cash .... Accounts receivable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problems 7 and 8 are based on the following information.
Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent–owned subsidiary Oakley Co. follow:
Additional Information for Fiscal Year 2018
• Iverson and Oakley’s consolidated net income was $45,000.
• Oakley paid $5,000 in dividends during the year. Iverson paid $12,000 in dividends.
• Oakley sold $11,000 worth of merchandise to Iverson during the year.
• There were no purchases or sales of long-term assets during the year.
In the 2018 consolidated statement of cash flows for Iverson Company:
Net cash flows from operating activities were
a. $12,000
b. $20,000
c. $24,000
d. $25,000

2018
2017
Cash ....
Accounts receivable (net)
Merchandise inventory....
Buildings and equipment (net)
Trademark ....
$ 20,000
55,000
85,000
95,000
85,000
45,000
105,000
100,000
Totals....
$327,000
$308,000

2018
2017
Accounts payable..
Notes payable, long-term
Noncontrolling interest..
Common stock, $10 par
Retained earnings (deficit)...
$ 75,000
$ 63,000
25,000
-0-
39,000
200,000
13,000
200,000
(15,000)
Totals.....
$327,000
$308,000

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