PLASTER, INC., AND SUBSIDIARY STUCCO COMPANYConsolidated Statement of Cash FlowsFor the Year Ended December 31, 2021Cash flows from operating activities:Cash flows from investing activities:Cash flows from financing activities:Beginning cash, 1/1/21Ending cash, 12/31/21$$10$$000000 On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed theacquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date, Stucco reported the followingbook values for its assets and liabilities:CashAccounts receivableInventoryLandBuildingsEquipmentAccounts payable(Parentheses indicate credit balances.)On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:$ 64,500136,900Equipment (3-year remaining life)Database (10-year remaining life)CashAccounts receivable (net)InventoryLandBuildings (net)Equipment (net)Database219, 20070,400189,400324,300(37,700)At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available:Plaster, Inc.December 31,2020Total assetsAccounts payableLong-term liabilitiesCommon stockNoncontrolling interestRetained earningsTotal liabilities and equitiesRevenuesCost of goods soldDepreciationDatabase amortizationInterest and other expensesConsolidated net income$$$$ 80,400187,60045,700384,500441,100318,900260,3001,912,5003,363,00085,400427,0001,921,500PLASTER, INC., AND SUBSIDIARY STUCCO COMPANYConsolidated Income StatementFor the Year Ended December 31, 202188929,100$ 3,363,000$ 785,200199,2009,38010,600$ConsolidatedDecember 31,2021$258,100515,900764,900389, 300399,7002,168,000178,220$ 4,674,120$114,2001,351,5401,921,500272,6001,014,280$ 4,674,120$ 1,296,6001,004,380292,220Additional Information for 2021• On December 1, Stucco paid a $47.200 dividend. During the year, Plaster paid $172,000 in dividends.During the year, Plaster issued $924,540 in long-term debt at par.• Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows fromoperating activities. (Negative amounts and amounts to be deducted should be Indicated by a minus sign.)

The question is based on the concept of Cash Flow Statement. Cash flow statement is the statement…

On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $ 64,500 136,900 219, 200 70,400 189,400 324,300 (37,700) (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment (3-year remaining life) Database (10-year remaining life) $ 80,400 187,600 At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available Plaster, Inc. Decorhon 21 Consolidated Docombon 21

On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $ 64,500 136,900 219, 200 70,400 189,400 324,300 (37,700) (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment (3-year remaining life) Database (10-year remaining life) $ 80,400 187,600 At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available Plaster, Inc. Decorhon 21 Consolidated Docombon 21

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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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…
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At the end of 2018, Terry Company prepared the following schedule of investments in available-for-sale debt securities (all of which were acquired at par value): Company Amortized Cost 12/31/18 Fair Value Cumulative Change in Fair Value Morgan Company $35,000 $34,200 $(800) Nance Company 50,000 53,100 3,100 Totals $85,000 $87,300 $2,300 During 2019, the following transactions occurred: July 1 Purchased Oscar Company debt securities with a par value of 100,000 for $98,000. The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and December 31. Terry uses the straight-line method to amortize any discounts or premiums. Oct. 11 Sold all of the Morgan Company securities for $33,000 plus interest of $1,300. Dec. 31 Received interest of $6,000 on the Nance Company and Oscar Company debt securities, and the following yearend total market values were available: Nance Company debt securities, $55,000; Oscar…