ve the following questions: The following information was derived from the 2017 consolidated financial statements of Parents Co., which owns 80% of AAA Co. as well as 40% of BBB Co.: Equity Earnings from BBB Co. $120,000 Decrease in Acco
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Solve the following questions:
The following information was derived from the 2017 consolidated financial statements of Parents Co.,
which owns 80% of AAA Co. as well as 40% of BBB Co.:
Equity Earnings from BBB Co. $120,000
Decrease in Accounts Payable $5,000
Increase in
Increase in Inventory $20,000
Increase in Bonds Payable $40,000
Depreciation $20,000
Loss on sale of machinery $10,000
Carrying value of machinery sold $60,000
Dividends received from BBB Co. $10,000
Purchase of a building for cash $400,000
Goodwill impairment loss $5,000
Entity Net Income allocated to non-controlling interest $5,000
Consolidated net income allocated to Parent $950,000
Dividends paid by Parents Co. $40,000
Dividends paid by AAA Co. $12,000
The cash balance at the start of 2017 was $200,000.
Required:
Prepare the consolidated statement of
2017
Step by step
Solved in 3 steps with 2 images
- The Wondai Ltd Croup reports the following balances in its consolidated financial statements for the year ending 30 June Financial year 2018 $ 2017 $ Buildings 524,000 268,000 ACC Depr. - Buildings 190,000 143,000 Depr Expense - Buildings 50,000 23,000 On1 July 2017. the Wondai Ltd Group acquired 80%. the shares in Yallingup Ltd. which recorded the following account balances at that date: 1 July 2017 $ Buildings 80,000 Acc Depr.- Buildings 32,000 During the year ended 30 June 2018, the Wondai Ltd Group disposed of buildings with a carrying. amount of $63,000 Required: Calculate the amount of consolidated cash flows from investing activities in relation to the purchase of buildings for the year ending 30 June 2018The Davidson Corporation’s balance sheet and income statementare given here:Davidson Corporation: Balance Sheet as of December 31, 2005(Millions of Dollars)Assets Liabilities and EquityCash and equivalents $ 15 Accounts payable $ 120Accounts receivable 515 Notes payable 220Inventories 880 Accruals 280Total current assets $1,410 Total current liabilities $ 620Net plant and equipment 2,590 Long-term bonds 1,520Total debt $2,140Common stock(100 million shares) 260Retained earnings 1,600Common equity $1,860Total assets $4,000 Total liabilities and equity $4,000Davidson Corporation: Income Statement for Year Ending December 31, 2005(Millions of Dollars)Sales $6,250Operating costs excluding depreciation and amortization 5,230EBITDA $1,020Depreciation and amortization 220EBIT $ 800Interest 180EBT $ 620Taxes (40%) 248Net income $ 372Common dividends paid $ 146Earnings per share $ 3.72a. All revenues were received in cash during the year and all costs except depreciationand amortization were…Pam Company paid $440,000 for an 80 percent interest in Sun Company on July 1, 2016, when Sun had total equity of $220,000. Sun Company reported earnings of $20,000 for 2016 and declared dividends of $32,000 on November 1, 2016. RequiredGive the entries to record these facts on the books of Pam Company: Assuming that Pam Company uses the cost method of accounting for its subsidiaries.Assuming that Pam Company uses the equity method of accounting for its subsidiaries. (Any difference between investment cost and book value acquired is to be assigned to equipment and amortized over a 10-year period.)
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- WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition: Assets Liabilities and Equity Accounts Receivable 79,000 Current Liabilities 145,000 Inventory 112,000 Long-term notes 100,000 Other current assets 55,000 Ordinary share, P1 par 50,000 Equipment (net) 294,000 Share premium 200,000 Goodwill 30,000 Retained earnings 75,000 Total assets 570,000 Total liabilities and equity 570,000 On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018. The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled their…WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition: Assets Liabilities and Equity Accounts Receivable 79,000 Current Liabilities 145,000 Inventory 112,000 Long-term notes 100,000 Other current assets 55,000 Ordinary share, P1 par 50,000 Equipment (net) 294,000 Share premium 200,000 Goodwill 30,000 Retained earnings 75,000 Total assets 570,000 Total liabilities and equity 570,000 On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018. The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled their fair…WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition: Assets Liabilities and Equity Accounts Receivable 79,000 Current Liabilities 145,000 Inventory 112,000 Long-term notes 100,000 Other current assets 55,000 Ordinary share, P1 par 50,000 Equipment (net) 294,000 Share premium 200,000 Goodwill 30,000 Retained earnings 75,000 Total assets 570,000 Total liabilities and equity 570,000 On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018. The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled their fair…
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