ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.17P
To determine
Consolidated statement of cash flow: consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of
computation of cash flows from operating activities using direct method.
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Students have asked these similar questions
Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent-owned subsidiary Oakley Co. follow:
Cash
Accounts receivable (net)
Merchandise inventory
Buildings and equipment (net)
Trademark
Totals
Accounts payable
Notes payable, long-term
Noncontrolling interest
Common stock, $10 par
Retained earnings (deficit)
Totals
2018
$ 34,100
64,000
95,450
93,300
103,200
$ 390,050
$ 106,050
62,250
200,000
21,750
$ 390,050
2017
$ 17,750
46,000
51,250
111,000
121,500
$347,500
$ 86,750
31,800
53,250
200,000
(24,300)
$ 347,500
Additional Information for Fiscal Year 2018
• Iverson and Oakley's consolidated net income was $68,250.
• Oakley paid $6,000 in dividends during the year. Iverson paid $12,000 in dividends.
Oakley sold $16,900 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
One Product Corporation (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance
prepared on December 31, at the end of its first year of operations, were:
22,000
8,300
1,055
12,240
1,940
45,400
4,440
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Inventory
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Sales Tax Payable
FICA Payable
Withheld Income Taxes Payable
Salaries and Wages Payable
Unemployment Tax Payable
Deferred Revenue
Interest Payable
Notes Payable (long-term)
500
600
500
1,600
300
4,500
533
23,700
18, 200
20,022
17,930
4,000
Common Stock
Additional Paid-In Capital, Common
Retained Earnings
Treasury Stock
The following information is relevant to the first month of operations in the following year:
• OPC sells its inventory at $150 per unit, plus sales tax of 6 percent. OPC's January 1 inventory balance consists of
180 units at a total cost of $12.240. OPC's policy is to use the FIFO method, recorded using…
Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31
December 20X1, Fromage sold inventory to Frais at a sales price of £50,000. None of the goods remained
in Frais' inventory. Fromage applied a margin of 20%.
Extracts from the statement of profit or loss for the two entities are shown below:
Fromage
Frais
£000
£000
Revenue
1,000
750
Cost of sales
(650)
(250)
What would be the revenue and cost of sales figures reported in the consolidated statement of
profit or loss for the year ended 31 December 20X1?
Answer to the nearest £000
a.
Revenue 1700 Cost of sales 850
O b. Revenue 1750 Cost of sales 910
O c. Revenue 1700 Cost of sales 860
d. None of these options are correct
Revenue 1550 Cost of sales 800
Chapter 10 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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