Becon Corporations controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes
Question:
Consolidated net income for 20X4 was $271,000.
Handy reported net income of $70,000 for 20X4.
Becon paid dividends of $25,000 in 20X4.
Handy paid dividends of $15,000 in 20X4.
Becon issued common stock on April 7, 20X4, for a total of $150,000.
Consolidated wages payable increased by $7,000 in 20X4.
Consolidated depreciation expense for the year was $21,000.
Consolidated accounts receivable decreased by $32,000 in 20X4.
Bonds payable of Becon with a book value of $204,000 were retired for $200,000 on December 31, 20X4.
Consolidated amortization expense on patents was $13,000 for 20X4.
Becon sold land that it had purchased for $142,000 to a nonaffiliate for $134,000 on June 10, 20X4.
Consolidated accounts payable decreased by $12,000 during 20X4.
Total purchases of equipment by Becon and Handy during 20X4 were $295,000.
Consolidated inventory increased by $16,000 during 20X4.
There were no intercompany transfers between Becon and Handy in 20X4 or prior years except for Handy's payment of dividends. Becon uses the indirect method in preparing its cash flow statement.
Required
a. What amount of dividends was paid to the noncontrolling interest during 20X4?
b. What amount will be reported as net cash provided by operating activities for 20X4?
c. What amount will be reported as net cash used in investing activities for 20X4?
d. What amount will be reported as net cash used in financing activities for 20X4?
e. What was the change in cash balance for the consolidated entity for 20X4?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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