Alford Company and its 80 percentowned subsidiary, Knight, have the following income statements for 2011 Additional Information for 2011 cent Intra entity inventory transfers during the year amounted to $90,000 and were downstream from Alford to Knight cent Unrealized inventory gains at January 1 w...

DIRECT APPROACH Cash revenues add book values eliminate intraentity transfers and add decrease in ac ...

Alford Company and its 80 percentowned subsidiary, Knight, have the following income statements for 2011: Additional Information

Question:

Alford Company and its 80 percent€“owned subsidiary, Knight, have the following income statements for 2011:

Additional Information for 2011
€¢ Intra-entity inventory transfers during the year amounted to $90,000 and were downstream from Alford to Knight.
€¢ Unrealized inventory gains at January 1 were $6,000, but at December 31, they are $9,000.
€¢ Annual excess amortization expense resulting from the acquisition is $11,000.
€¢ Knight paid dividends totaling $20,000.
€¢ The noncontrolling interest€™s share of the subsidiary€™s income is $9,800.
€¢ During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.
Using either the direct or the indirect approach, determine the amount of cash generated from operations during the period by this businesscombination.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...