ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.17P
To determine
Consolidated statement of cash flow: consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of
computation of cash flows from operating activities using direct method.
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Students have asked these similar questions
Net cash flows from operating activities were:
Multiple Choice
O
O
O
O
$15,700.
$41,050.
$20,700.
$41,400.
Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $287,100 on January 1, 20X8, when the
book value of Snoopy's net assets was equal to $319,000. Peanut uses the equity method to account for investments. Trial balance
data for Peanut and Snoopy as of December 31, 20X8, follow:
Peanut Company
Snoopy Company
Cash
Accounts Receivable
Inventory
Debit
$ 163,000
Credit
173,000
209,000
Debit
$ 87,000
67,000
93,000
Credit
Investment in Snoopy Company
Land
Buildings and Equipment.
342,000
205,000
714,000
93,000
192,000
Cost of Goods Sold
193,000
113,000
Depreciation Expense
42,000
10,000
selling & Administrative Expense
205,000
Dividends Declared
99,000
Accumulated Depreciation
$ 443,000
Accounts Payable
Bonds Payable
Common Stock
Retained Earnings
Sales
Income from Snoopy Company
Total
32,000
22,000
$ 20,000
72,000
57,000
200,000
75,000
493,000
199,000
279,300
120,000
783,000
238,000
74,700
0
$ 2,345,000
$ 2,345,000
$ 709,000
$ 709,000
Required:
a. Prepare any…
Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent-owned subsidiary Oakley Co. follow:
Cash
Accounts receivable (net)
Merchandise inventory
Buildings and equipment (net)
Trademark
Totals
Accounts payable
Notes payable, long-term
Noncontrolling interest
Common stock, $10 par
Retained earnings (deficit)
Totals
2018
$ 34,100
64,000
95,450
93,300
103,200
$ 390,050
$ 106,050
62,250
200,000
21,750
$ 390,050
2017
$ 17,750
46,000
51,250
111,000
121,500
$347,500
$ 86,750
31,800
53,250
200,000
(24,300)
$ 347,500
Additional Information for Fiscal Year 2018
• Iverson and Oakley's consolidated net income was $68,250.
• Oakley paid $6,000 in dividends during the year. Iverson paid $12,000 in dividends.
Oakley sold $16,900 worth of merchandise to Iverson during the year.
• There were no purchases or sales of long-term assets during the year.
In the 2018 consolidated statement of cash flows for Iverson Company:
Net cash flows from operating activities were
Chapter 10 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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