Tuchel Company held 80% of the common stock of Chelsea Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2019 and 2020. 2019 2020 Revenues $ 1,064,000 $ 1,232,000 Cost of goods sold ( 714,000) ( 756,000) Depreciation and amortization ( 126,000) ( 140,000) Gain on sale of building 0 28,000 Interest expense ( 42,000) ( 42,000) Non-controlling interest ( 12,600) ( 15,400) Net income to controlling interest $ 169,400 $ 306,600 Retained earnings, January 1 $ 420,000 $ 519,400 Net Income (from above) 169,400 306,600 Dividends paid ( 70,000) ( 140,000) Retained earnings, December 31 $ 519,400 $ 686,000 Cash $ 112,000 $ 196,000 Accounts receivable 210,000 196,000 Inventory 280,000 476,000 Buildings and equipment (net) 896,000 966,000 Database 210,000 203,000 Total assets $ 1,708,000 $ 2,037,000 Accounts payable $ (196,000) $ (140,000) Bonds payable (560,000) (720,000) Non-controlling interest in Subsidiary ( 44,800) ( 57,400) Common stock (140,000) (168,000) Additional paid - in capital (247,800) (265,600) Retained earnings, December 31 (from above) (519,400) (686,000) Total liabilities and stockholders’ equity $ (1,708,000) $ (2,037,000) Additional Information: 1. Bonds were issued during 2020 by the parent for cash. 2. Amortization of a database acquired in the original combination amounted to $7,000 per year. 3. A building with a cost of $84,000 but a $42,000 book value was sold by the parent for cash on May 11, 2020. 4. Equipment was purchased by the subsidiary on July 23, 2020, using cash. 5. Late in November 2020, the parent issued common stock for cash. 6. During 2020, the subsidiary paid dividends of $14,000. Required: Prepare a consolidated statement of cash flows for the consolidated company for the year ending December 31, 2020
Tuchel Company held 80% of the common stock of Chelsea Inc. and 40% of this
subsidiary's convertible bonds. The following consolidated financial statements were
for 2019 and 2020.
2019 2020
Revenues $ 1,064,000 $ 1,232,000
Cost of goods sold ( 714,000) ( 756,000)
Gain on sale of building 0 28,000
Interest expense ( 42,000) ( 42,000)
Non-controlling interest ( 12,600) ( 15,400)
Net income to controlling interest $ 169,400 $ 306,600
Net Income (from above) 169,400 306,600
Dividends paid ( 70,000) ( 140,000)
Retained earnings, December 31 $ 519,400 $ 686,000
Cash $ 112,000 $ 196,000
Accounts receivable 210,000 196,000
Inventory 280,000 476,000
Buildings and equipment (net) 896,000 966,000
Database 210,000 203,000
Total assets $ 1,708,000 $ 2,037,000
Accounts payable $ (196,000) $ (140,000)
Bonds payable (560,000) (720,000)
Non-controlling interest in Subsidiary ( 44,800) ( 57,400)
Common stock (140,000) (168,000)
Additional paid - in capital (247,800) (265,600)
Retained earnings, December 31 (from above) (519,400) (686,000)
Total liabilities and
Additional Information:
1. Bonds were issued during 2020 by the parent for cash.
2. Amortization of a database acquired in the original combination amounted to
$7,000 per year.
3. A building with a cost of $84,000 but a $42,000 book value was sold by the parent
for cash on May 11, 2020.
4. Equipment was purchased by the subsidiary on July 23, 2020, using cash.
5. Late in November 2020, the parent issued common stock for cash.
6. During 2020, the subsidiary paid dividends of $14,000.
Required:
Prepare a consolidated statement of cash flows for the consolidated company for the
year ending December 31, 2020
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