Bolero Company holds 75 percent of the common stock of Rivera, Inc., and 40 percent...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Bolero Company holds 75 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiarys convertible bonds. The following consolidated financial statements are for 2017 and 2018:
2017
2018
Revenues
$
(945,000
)
$
(1,075,000
)
Cost of goods sold
619,000
659,000
Depreciation and amortization
109,000
138,000
Gain on sale of building
0
(39,000
)
Interest expense
49,000
49,000
Consolidated net income
(168,000
)
(268,000
)
to noncontrolling interest
28,000
30,000
to parent company
$
(140,000
)
$
(238,000
)
Retained earnings, 1/1
$
(319,000
)
$
(390,000
)
Net income
(140,000
)
(238,000
)
Dividends declared
69,000
119,000
Retained earnings, 12/31
$
(390,000
)
$
(509,000
)
Cash
$
99,000
$
198,000
Accounts receivable
188,000
159,000
Inventory
219,000
378,000
Buildings and equipment (net)
659,000
737,000
Databases
188,000
164,000
Total assets
$
1,353,000
$
1,636,000
Accounts payable
$
(161,000
)
$
(128,000
)
Bonds payable
(419,000
)
(538,000
)
Noncontrolling interest in Rivera
(51,000
)
(70,000
)
Common stock
(136,000
)
(149,000
)
Additional paid-in capital
(196,000
)
(242,000
)
Retained earnings
(390,000
)
(509,000
)
Total liabilities and equities
$
(1,353,000
)
$
(1,636,000
)
Additional Information for 2018
The parent issued bonds during the year for cash.
Amortization of databases amounts to $24,000 per year.
The parent sold a building with a cost of $98,000 but a $49,000 book value for cash on May 11.
The subsidiary purchased equipment on July 23 for $241,000 in cash.
Late in November, the parent issued stock for cash.
During the year, the subsidiary paid dividends of $44,000. Both parent and subsidiary pay dividends in the same year as declared.
Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2018. (Use indirect method)
PLEASE SHOW ALL WORK AND STEPS TO GET EACH ANSWER, THANK YOU
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
