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

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Question

PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY
Consolidated Statement of Cash Flows
For the Year Ended December 31, 2021
Cash flows from operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
Beginning cash, 1/1/21
Ending cash, 12/31/21
$
$
10
$
$
0
0
0
0
0
0

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
(Parentheses indicate credit balances.)
On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:
$ 64,500
136,900
Equipment (3-year remaining life)
Database (10-year remaining life)
Cash
Accounts receivable (net)
Inventory
Land
Buildings (net)
Equipment (net)
Database
219, 200
70,400
189,400
324,300
(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,
2020
Total assets
Accounts payable
Long-term liabilities
Common stock
Noncontrolling interest
Retained earnings
Total liabilities and equities
Revenues
Cost of goods sold
Depreciation
Database amortization
Interest and other expenses
Consolidated net income
$
$
$
$ 80,400
187,600
45,700
384,500
441,100
318,900
260,300
1,912,500
3,363,000
85,400
427,000
1,921,500
PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY
Consolidated Income Statement
For the Year Ended December 31, 2021
8
8
929,100
$ 3,363,000
$ 785,200
199,200
9,380
10,600
$
Consolidated
December 31,
2021
$
258,100
515,900
764,900
389, 300
399,700
2,168,000
178,220
$ 4,674,120
$
114,200
1,351,540
1,921,500
272,600
1,014,280
$ 4,674,120
$ 1,296,600
1,004,380
292,220
Additional 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 from
operating activities. (Negative amounts and amounts to be deducted should be Indicated by a minus sign.)

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