The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income...
80.2K
Verified Solution
Link Copied!
Question
Accounting
The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash flows for the consolidated entity. Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing. The following items are proposed for inclusion in the consolidated cash flow statement: Decrease in accounts receivable Increase in accounts payable Increase in inventory Increase in bonds payable Equipment purchased Common stock repurchased Depreciation reported for current period Gain recorded on sale of equipment Book value of equipment sold Goodwill impairment loss Sales Cost of goods sold Dividends paid by parent Dividends paid by subsidiary Consolidated net income for the year Income assigned to the noncontrolling interest $ 23,000 5,000 15,000 120,000 380,000 35,000 73,000 8,000 37,000 3,000 900,000 368,000 60,000 30,000 464,000 14,000 Required: Prepare a statement of cash flows for Consolidated Enterprises Inc. using the direct method of computing cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)
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!
