Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 10, Problem 10.24P
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 cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared form the information in the three consolidated statements, when an indirect approach is used consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.
preparation of consolidated statement of cash flows for 20X6using indirect method.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Answers are given. Only need solution for the answers.
22. The following are an excerpt from the consolidated statement of changes in equity of LycheeHoldings Inc. and Subsidiaries for the year ended December 31, 2020:• Capital stock- P2,916,845,000• Treasury shares- P760,088,000• Additional paid-in capital- P856,684,000• Retained earnings- P6,143,508,000• Equity reserves (It pertains to the difference between the consideration transferred and theequity acquired in a common control business combination)- P264,560,000• Remeasurement loss on defined benefit plan- P29,294,000• Net unrealized gain on equity instruments at fair value through OCI- P9,517,000• Non-controlling interests- P2,723,129,000How much is the total shareholders’ equity as of December 31, 2020?answer- P12,124,861,000
24. Melon Co. uses the direct method to prepare its statement of cash flows. Melon had the followingcash flows during 2020:• Cash receipts from issuance of ordinary shares - P800,000• Cash receipts from…
Newly formed S&J Iron Corporation has 192,000 shares of $5 par common stock authorized. On March 1, 2018, S&J Iron issued 11,500 shares of the stock for $13 per share. On May 2, the company issued an additional 23,000 shares for $19 per share. S&J Iron was not affected by other events during 2018.
Required:
Record the transactions in a horizontal statement model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.
Determine the amount S&J Iron would report for common stock on the December 31, 2018, balance sheet.
Determine the amount S&J Iron would report for paid-in capital in excess of par.
What is the total amount of capital contributed by the owners?
What amount of total assets would S&J Iron report on the December 31, 2018, balance sheet?
The balance sheet data of Minx Company at the end of 20x7 and 20x6 follow:
Land was acquired for $100,000 in exchange for ordinary shares, par $100,000, during the year; all equipment purchased was for cash. Equipment costing $10,000 was sold for $4,000; book value of the equipment was $8,000 and the loss was reported in net income. Cash dividends of $20,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 20x7, for Minx Company:
a The net cash provided by operating activities was $ Answer
b The net cash provided (used) by investing activities was $ Answer
c The net cash provided (used) by financing activities was $ Answer
Chapter 10 Solutions
Advanced Financial Accounting
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 9. On February 1, 20x21, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The incomplete working paper elimination entries on that date for the consolidated of statement of financial position of Paco Corp. and School Inc. are shown below: WPEE 1 Shareholders’ equity – School Inc. 1,453,500 Investment in School Inc. 1,235,475 Non-controlling interest 218,025 WPEE 2 Inventories 33,150 Equipment 280,500 Goodwill…arrow_forwardQuestion 38 Plywood Corporation's consolidated cash flow statement for the year ended December 31, 20X8, reported operating cash inflows of $160,000, financing cash outflows of $90,000, and investing cash outflows $55,000, and an ending cash balance of $75,000. Plywood acquired 75 percent of Sawdust Company's common stock on July 1, 20X6, at book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of Sawdust Company's book value. Sawdust reported net income of $20,000, paid dividends of $8,000 in 20X8, and is included in Plywood's consolidated statements. Plywood paid dividends of $25,000 in 20X8. The indirect method is used in computing cash flow from operations. Based on the information provided, what amount was reported as dividends paid in the cash flow from financing activities section of the consolidated statement of cash flows? $25,000 $33,000 $27,000 $8,000arrow_forward30. On January 1 2021 parent co. acquired 80% of subsidiary inc.’s outstanding stocks for 1,600,000 cash. subsidiary inc balance sheet shows 3,000,000 identifiable assets and 1,800,000 liabilities. all assets and liabilities of setter are fairly valued, except for an undervalued equipment. the stock acquisition resulted to a goodwill of 700,000. assume parent had 5,100,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?arrow_forward
- Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Dec. 31. At the end of the accounting period, the fair value of the remaining 600 shares of Tetts Co.'s stock was $85.35 per share. The fair value of the remaining 1,750 shares for Issaxson Co.'s stock was equal to its cost of 436.04 per share. Journalize the entry for this transactions.arrow_forwardPar Company acquires 100% of the common stock of Sub Company for an agreedupon price of $900,000. The book value of the net assets is $700,000, which includes $50,000 of subsidiary cash equivalents. Existing fixed assets have fair values greater than their recorded book values. How will this transaction affect the cash flow statement of the consolidated firm in the period of the purchase, if:a. Par Company pays $900,000 cash to purchase the stock?b. Par Company pays $500,000 cash and signs 5-year notes for $400,000? All Sub Company shareholders receive notes.c. Par Company exchanges only common stock with the shareholders of Sub Company?arrow_forwardPencil Company acquired 70 percent of Stylus Corporation’s stock on January 2, 20X3, for $85,400 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Pencil Company Stylus Corporation Book Value Fair Value Book Value Fair Value Cash $ 202,000 $ 202,000 $ 65,000 $ 65,000 Other Assets 401,000 401,000 124,000 124,000 Total Debits $ 603,000 $ 189,000 Current Liabilities $ 87,000 87,000 $ 67,000 67,000 Common Stock 287,000 65,000 Retained Earnings 229,000 57,000 Total Credits $ 603,000 $ 189,000 Required: Prepare a consolidated balance sheet immediately following the acquisition.arrow_forward
- 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 werea. $12,000b. $20,000c. $24,000d. $25,000arrow_forwardProblems 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 financing activities werea. $(25,000)b. $(37,000)c. $(38,000)d. $(42,000)arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 530,000 shares for $610,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $380,000 and distributed cash dividends of 30 cents per share. At year-end, the fair value of the shares is $648,000. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.arrow_forward
- P Inc. purchased 81% of the voting shares of S Inc for $696,143 cash on January 1, year 2. P recorded Investment in S at cost. The Balance Sheet of P Inc. & S Inc. for year 5 showed the following balances P Inc. S Inc. Investment $696,143 $90,653 What is the amount for Investment on Consolidated Balance Sheet of P Inc. for year5?arrow_forwardCorvus Company has gained control over the operations of Glaive Corporation by acquiring 75% of its outstanding capital stock for P4,650,000. This amount includes a control premium of P225,000. Data from the balance sheets of the two entities included the following amounts as of the date of acquisition: Corvus Company Glaive Corporation Cash 1,012,500 800,000 Accounts Receivable, net 2,770,000 675,000 Inventory 1,600,000 1,200,000 Land 3,000,000 2,400,000 Building 6,750,000 3,400,000 Accumulated Depreciation - Building (1,687,500) (1,700,000) Equipment 800,000 250,000 Accumulated Depreciation…arrow_forwardCorvus Company has gained control over the operations of Glaive Corporation by acquiring 75% of its outstanding capital stock for P4,650,000. This amount includes a control premium of P225,000. Data from the balance sheets of the two entities included the following amounts as of the date of acquisition: Corvus Company Glaive Corporation Cash 1,012,500 800,000 Accounts Receivable, net 2,770,000 675,000 Inventory 1,600,000 1,200,000 Land 3,000,000 2,400,000 Building 6,750,000 3,400,000 Accumulated Depreciation - Building (1,687,500) (1,700,000) Equipment 800,000 250,000 Accumulated Depreciation…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
