On June 30, 2021, Plaster, Inc., paid $900,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $225,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:Cash58,800Accounts receivable124,800Inventory199,800Land64,200Buildings172,700Equiptment295,700Accounts Payable(34,400) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:Equiptment (3- year remaining life)73,400Database (10-year remaining life)170,000At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available:*See attachment*Additional information for 2021On December 1, Stucco paid a $49,600 dividend. During the year, Plaster paid $84,000 in dividends.During the year, Plaster issued $769,420 in long-term debt at par.Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.Instructions:Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) **PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY** **Consolidated Statement of Cash Flows** **For the Year Ended December 31, 2021**---**Cash flows from operating activities:**- [Line 1 Description] [Amount]- [Line 2 Description] [Amount]- [Line 3 Description] [Amount]- [Line 4 Description] [Amount]- [Line 5 Description] [Amount]- [Line 6 Description] [Amount]- **Total Cash from Operating Activities:** $0---**Cash flows from investing activities:**- [Line 1 Description] [Amount]- [Line 2 Description] [Amount]- **Total Cash from Investing Activities:** $0---**Cash flows from financing activities:**- [Line 1 Description] [Amount]- [Line 2 Description] [Amount]- [Line 3 Description] [Amount]- **Total Cash from Financing Activities:** $0---**Summary of Cash Flows:**- **Beginning Cash, 1/1/21:** [Amount]- **Ending Cash, 12/31/21:** $0---Note: Each section represents different activities that affect cash flow: operating, investing, and financing. The statement shows zero balances, indicating it serves as a template. **Plaster, Inc. and Subsidiary Stucco Company Financial Statements****Balance Sheet***As of December 31, 2020 and December 31, 2021*| **Assets** | **Plaster, Inc. 2020** | **Consolidated 2021** ||-------------------------------|------------------------|------------------------|| Cash | $41,400 | $233,800 || Accounts receivable (net) | $348,300 | $467,300 || Inventory | $399,600 | $692,800 || Land | $288,900 | $353,100 || Buildings (net) | $235,800 | $358,800 || Equipment (net) | $1,732,500 | $1,971,000 || Database | — | $161,500 || **Total assets** | **$3,046,500** | **$4,238,000** || **Liabilities and Equities** | **Plaster, Inc. 2020** | **Consolidated 2021** ||-------------------------------|------------------------|------------------------|| Accounts payable | $77,400 | $103,500 || Long-term liabilities | $387,000 | $1,156,420 || Common stock | $1,741,500 | $1,741,500 || Noncontrolling interest | — | $247,100 || Retained earnings | $840,600 | $989,480 || **Total liabilities and equities** | **$3,046,500** | **$4,238,000** |**Income Statement***For the Year Ended December 31, 2021*| **Revenues** | | **$1,175,400** ||------------------------------|---------------------------|------------------------|| Cost of goods sold | | $711,800 || Depreciation | | $180,600 || Database amortization | | $8,500 || Interest and other expenses | | $9,600 || **Total Expenses** | |

Statement of cash flows is the one prepared by the companies to depict cash inflow/Outflow from three kinds of activities as operating, financing, and investing. This is prepared by two methods: Direct and indirect. The cash flow statement is as followed: Formula table: Result:

On June 30, 2021, Plaster, Inc., paid $900,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $225,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash 58,800 Accounts receivable 124,800 Inventory 199,800 Land 64,200 Buildings 172,700 Equiptment 295,700 Accounts Payable (34,400) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equiptment (3- year remaining life) 73,400 Database (10-year remaining life) 170,000 At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available: See attachment Additional information for 2021 On December 1, Stucco paid a $49,600 dividend. During the year, Plaster paid $84,000 in dividends. During the year, Plaster issued $769,420 in long-term debt at par. Plaster reported no asset purchases or dispositions other than the acquisition of Stucco. Instructions: Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On June 30, 2021, Plaster, Inc., paid $900,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $225,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

Cash	58,800
Accounts receivable	124,800
Inventory	199,800
Land	64,200
Buildings	172,700
Equiptment	295,700
Accounts Payable	(34,400)

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:

Equiptment (3- year remaining life)	73,400
Database (10-year remaining life)	170,000

At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available:

*See attachment*

Additional information for 2021

On December 1, Stucco paid a $49,600 dividend. During the year, Plaster paid $84,000 in dividends.

During the year, Plaster issued $769,420 in long-term debt at par.

Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.

Instructions:

Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.)

**PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY**
**Consolidated Statement of Cash Flows**
**For the Year Ended December 31, 2021**

---

**Cash flows from operating activities:**

- [Line 1 Description]
[Amount]

- [Line 2 Description]
[Amount]

- [Line 3 Description]
[Amount]

- [Line 4 Description]
[Amount]

- [Line 5 Description]
[Amount]

- [Line 6 Description]
[Amount]

- **Total Cash from Operating Activities:**
$0

---

**Cash flows from investing activities:**

- [Line 1 Description]
[Amount]

- [Line 2 Description]
[Amount]

- **Total Cash from Investing Activities:**
$0

---

**Cash flows from financing activities:**

- [Line 1 Description]
[Amount]

- [Line 2 Description]
[Amount]

- [Line 3 Description]
[Amount]

- **Total Cash from Financing Activities:**
$0

---

**Summary of Cash Flows:**

- **Beginning Cash, 1/1/21:**
[Amount]

- **Ending Cash, 12/31/21:**
$0

---

Note: Each section represents different activities that affect cash flow: operating, investing, and financing. The statement shows zero balances, indicating it serves as a template.

**Plaster, Inc. and Subsidiary Stucco Company Financial Statements**

**Balance Sheet**

*As of December 31, 2020 and December 31, 2021*

| **Assets** | **Plaster, Inc. 2020** | **Consolidated 2021** |
|-------------------------------|------------------------|------------------------|
| Cash | $41,400 | $233,800 |
| Accounts receivable (net) | $348,300 | $467,300 |
| Inventory | $399,600 | $692,800 |
| Land | $288,900 | $353,100 |
| Buildings (net) | $235,800 | $358,800 |
| Equipment (net) | $1,732,500 | $1,971,000 |
| Database | — | $161,500 |
| **Total assets** | **$3,046,500** | **$4,238,000** |

| **Liabilities and Equities** | **Plaster, Inc. 2020** | **Consolidated 2021** |
|-------------------------------|------------------------|------------------------|
| Accounts payable | $77,400 | $103,500 |
| Long-term liabilities | $387,000 | $1,156,420 |
| Common stock | $1,741,500 | $1,741,500 |
| Noncontrolling interest | — | $247,100 |
| Retained earnings | $840,600 | $989,480 |
| **Total liabilities and equities** | **$3,046,500** | **$4,238,000** |

**Income Statement**

*For the Year Ended December 31, 2021*

| **Revenues** | | **$1,175,400** |
|------------------------------|---------------------------|------------------------|
| Cost of goods sold | | $711,800 |
| Depreciation | | $180,600 |
| Database amortization | | $8,500 |
| Interest and other expenses | | $9,600 |
| **Total Expenses** | |

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