P Corporation acquired 80 percent ownership of S Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of S Company. Consolidated balance sheets at January 1, 20X8, and December 31, 20X8, are as follows: Item Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Patents Total Assets Accounts Payable Wages Payable Notes Payable Common Stock $5 par Retained Earnings Noncontrolling Interest Total Liabilites & Equity The consolidated income statement for 20X8 contained the following amounts: Sales Cost of Goods Sold Wage Expense Depreciation Interest Expense Amortization Expense Other Expenses Consolidated Net Income Income to Noncontrolling Interest Income to Controlling Interest P and S paid dividends of $25,000 and $15,000, respectively, in 20X8. Prepare a consolidated statement of cash flows for 20X8. Jan 1, 20X8 50,000 75,000 85,000 60,000 300,000 (90,000) 12,000 492,000 40,000 20,000 150,000 100,000 162,000 20,000 492,000 172,000 45,000 30,000 12,000 2,000 52,000 (6,000) Dec 31, 20X8 80,000 90,000 100,000 80,000 350,000 (120,000) 10,000 590,000 58,000 16,000 175,000 100,000 218,000 23,000 590,000 400,000 (313,000) 87,000 81,000
P Corporation acquired 80 percent ownership of S Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of S Company. Consolidated balance sheets at January 1, 20X8, and December 31, 20X8, are as follows: Item Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Patents Total Assets Accounts Payable Wages Payable Notes Payable Common Stock $5 par Retained Earnings Noncontrolling Interest Total Liabilites & Equity The consolidated income statement for 20X8 contained the following amounts: Sales Cost of Goods Sold Wage Expense Depreciation Interest Expense Amortization Expense Other Expenses Consolidated Net Income Income to Noncontrolling Interest Income to Controlling Interest P and S paid dividends of $25,000 and $15,000, respectively, in 20X8. Prepare a consolidated statement of cash flows for 20X8. Jan 1, 20X8 50,000 75,000 85,000 60,000 300,000 (90,000) 12,000 492,000 40,000 20,000 150,000 100,000 162,000 20,000 492,000 172,000 45,000 30,000 12,000 2,000 52,000 (6,000) Dec 31, 20X8 80,000 90,000 100,000 80,000 350,000 (120,000) 10,000 590,000 58,000 16,000 175,000 100,000 218,000 23,000 590,000 400,000 (313,000) 87,000 81,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P Corporation acquired 80 percent ownership of S Company on January 1, 20X6, at underlying book value. At that date, the fair value of
the noncontrolling interest was equal to 20 percent of the book value of S Company. Consolidated balance sheets at January 1, 20X8,
and December 31, 20X8, are as follows:
Item
Cash
Accounts Receivable
Inventory
Land
Buildings & Equipment
Less: Accumulated Depreciation
Patents
Total Assets
Accounts Payable
Wages Payable
Notes Payable
Common Stock $5 par
Retained Earnings
Noncontrolling Interest
Total Liabilites & Equity
The consolidated income statement for 20X8 contained the following amounts:
Sales
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expense
Amortization Expense
Other Expenses
Consolidated Net Income
Income to Noncontrolling Interest
Income to Controlling Interest
P and S paid dividends of $25,000 and $15,000, respectively, in 20X8.
Prepare a consolidated statement of cash flows for 20X8.
Jan 1, 20X8
50,000
75,000
85,000
60,000
300,000
(90,000)
12,000
492,000
40,000
20,000
150,000
100,000
162,000
20,000
492,000
172,000
45,000
30,000
12,000
2,000
52,000
(6,000)
Dec 31, 20X8
80,000
90,000
100,000
80,000
350,000
(120,000)
10,000
590,000
58,000
16,000
175,000
100,000
218,000
23,000
590,000
400,000
(313,000)
87,000
81,000
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