Please help me Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for2019 and 2020 (credit balances indicated by parentheses):Plaster, Inc., and Consolidated Subsidiary Stucco20192020Retained earnings, 1/1$(620,000)$(762,000)(338,000)$(880,000)$240,000Net income(262,000)Retained earnings, 12/31$(762,000)Cash$180,000Accounts receivable340,000300,000Inventory420,000720,0001,420,000310,000$(220,000)(1,040,000)(122,000)Buildings and equipment (net)1,300,000Databases340,000Accounts payableBonds payable$(320,000)(820,000)(84,000)(220,000)Noncontrolling interest in StuccoCommon stock(280,000)Additional paid-in capital(374,000)(448,000)$(2,060,000)1,300,000Revenues$(1,800,000)Cost of goods sold1,220,000Depreciation and amortizationLoss on sale of equipment200,000240,000-0-60,000Interest expense80,00080,000 00,000Consolidated net income:to noncontrolling interestto parent company38,000$(262,000)42,000$(338,000)Additional Information for 2020:o The subsidiary purchased a building on 10 April for $410,000 in cash.o Amortization of databases amounts to $30,000 per year.o The parent issued stock for cash on 1 July.o The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20.o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared.o The parent issued bonds during the year for cash.o The only changes affecting retained earnings are net income and cash dividends paid.Required:Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method.

A cash flow statement is a type of financial statement that presents total information on all cash…

Consolidated net income: to noncontrolling interest to parent company 38,000 $(262,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. o Amortization of databases amounts to $30,000 per year. 42,000 $(338,000) o The parent issued stock for cash on 1 July. o The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. The parent issued bonds during the year for cash. The only changes affecting retained earnings are net income and cash dividends paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method.

Consolidated net income: to noncontrolling interest to parent company 38,000 $(262,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. o Amortization of databases amounts to $30,000 per year. 42,000 $(338,000) o The parent issued stock for cash on 1 July. o The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. The parent issued bonds during the year for cash. The only changes affecting retained earnings are net income and cash dividends paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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