Comparative consolidated financial statements for Pop Corporation and its subsidiary, Sat Corporation, at and for the years
Question:
Comparative consolidated financial statements for Pop Corporation and its subsidiary, Sat Corporation, at and for the years ended December 31, 2012 and 2011 follow (in thousands).
REQUIRED: Prepare a consolidated statement of cash flows for the year ended December 31, 2012. The changes in equipment are due to a $100,000 equipment acquisition, current depreciation, and the sale of one-ninth of the fair value/book value differential allocated to equipment ($10,000) and related accumulated depreciation ($2,000). This reduction in the unamortized fair value/book value differential results from selling a 10 percent interest in Sat for $72,700 and thereby reducing its interest from 90 percent to 80 percent. Sat's net income and dividends for 2012 were $110,000 and $50,000, respectively. Use the indirectmethod.
Pop Corporation and Subsidiary Comparative Consolidated Financial Statements at and for the Years Ended December 31, 2012 and 2011 Year's Change Year 2012 Year 2011 2012-2011 Income Statement $ 200.0 $3,050.0 $2,850.0 Sales Gain on 10% interest Cost of sales Depreciation expense Other expenses Noncontrolling interest share Net income 5.7 5.7 (1,750.7) (1.690.0) (508.0) (392.0) (60.7) (528.0) (20.0) (455.0) (63.0) (12.0) (22.0) $ 300.0 (10,0) $ 250.0 ১ 50.0 Retained Earnings Retained earnings-beginning $ 950.0 $ 50.0 50.0 $1,000.0 Net income 300.0 250.0 Dividends (200.0) $1,100.0 (200.0) $1,000.0 S 100.0 Retained earnings-ending Balance Sheet $ 46.5 87.5 $ 50.5 $ (4.0) (2.5) 130.0 Cash Accounts receivable-net 90.0 247.5 88.0 2,880.0 Inventories 377.5 Prepaid expenses Equipment Accumulated depreciation Land and buildings Accumulated depreciation Total assets (20.0) 68.0 2,970.0 90.0 (1,542.0) (1,044.0) (498.0) 960.0 960.0 (300.0) $2.667.5 (272.0) $3,000.0 $ 343.5 52.5 (28.0) $(332.5) S 140.0 Accounts payable Dividends payable Long-term notes payable Capital stock, $10 par Retained earnings Noncontrolling interest Total equities $(203.5) 52.5 245.0 1,000.0 545.0 1.000.0 (300.0) .0 1.100.0 1.000.0 100.0 130.0 59.0 $3.000.0 71.0 $(332.5) $2.667.5
Step by Step Answer:
Indirect Method Pop Corporation and Subsidiary Consolidated Statement of Cash Flows for the year ended December 31 2012 Cash Flows from Operating Activities Consolidated net income controlling share 3...View the full answer
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Related Video
This video explains the basic understanding of a group. The term control is acquired when a parent company acquires more than 50% voting rights of subsidiaries. We have covered the basic structure of the consolidated balance sheet, with multiple scenarios of 100% and partial acquisitions at the start and during an accounting period. Also, goodwill and Non-controlling interest are covered in detail
Students also viewed these Accounting questions
-
Comparative consolidated financial statements for Pop Corporation and its subsidiary, Son Corporation, at and for the years ended December 31, 2017 and 2016 follow (in thousands). REQUIRED: Prepare a...
-
Financial statements for Pop Corporation and its 75 percent-owned subsidiary, Son Corporation, for 2017 are summarized as follows (in thousands): Pop Corporation acquired its interest in Son at book...
-
Comparative consolidated financial statements for Pil Corporation and its 80 percent-owned subsidiary at and for the years ended December 31 are summarized as follows: REQUIRED: Prepare a...
-
Consider the following table, which gives the running time T(n) in seconds for a program for various values of the input size n: a. What is the value of T(n) if n = 160007 10240 5120 40960 20480 B C...
-
Branson Electric prepared the following condensed income statements for two successive years. At the end of 2017 (right-hand column), the inventory was understated by $40,000, but the error was not...
-
Using the comparison calculator between a Roth IRA and a regular IRA found at a web based calculator decide whether an individual with the following data is better off with a regular IRA or a Roth...
-
Consider the simple linear regression model fit to the copolyester viscosity data in Problem 2.14. Problem 2.14 Hsuie, Ma, and Tsai ("Separation and Characterizations of Thermotropic Copolyesters of...
-
1. Can you imagine any risks or dangers that Western companies might face in pursuing base of the pyramid strategies? 2. Is there anything that Western companies might learn from base of the pyramid...
-
I have a mechanical design test coming up where we need to design a gearbox/speed reducer. We were given a practice one and I was wondering if you could just draw the assembly drawing for it (it does...
-
DeCort Company had these adjusting entry situations at the end of December: 1. On May 1, DeCort Company paid $960 for a two-year insurance policy. The policy was for the period May 1 through April 30...
-
Pan Corporation acquired an 85 percent interest in Sly Corporation on August 1, 2011, for $522,750, equal to 85 percent of the underlying equity of Sly on that date. In August 2011, Sly sold...
-
The effect of unrealized profits and losses on sales between affiliated companies is eliminated in preparing consolidated financial statements. When are profits and losses on such sales realized for...
-
Three forces act on a particle that moves with unchanging velocity v = (2 m/s)i (7 m/s)i. Two of the forces are F1 = (2 N)i + (3 N)j + ( 2N)k and F2 = ( 5N)i + (8 N)j + ( 2 N)k. What is the third...
-
We wish to prove the following statement: For all integers a and b, if 5 divides a or 5 divides b, then 5 divides (5a + b). In this case, it is to attempt to find an example. In this case, it is to...
-
b Employer identification number (EIN) 26-3356489 c Employer's name, address, and ZIP code General Motors LLC 9832 Detroit Way Detroit, MI 54569 d Control number e Employee's first name and initial...
-
Mr Apricot Angelfish is an Australian, born in Melbourne. Apricot is a one of the top Michelin Star chefs in the world and has been working in Hong Kong for 20 years. He is a permanent resident in...
-
Home work Differential amplifier with Darlington input transistors: A) If Rb-0 prove that: Rid=4(hfe+1)hie1=4(hfe+1)hib1 B) If Rb+ 0 prove that: CMRR Ro3 Rb (1+hfe) 2hib1+ VI Rb where Ro3 = r03...
-
A parent company acquired 80% of the stock of a subsidiary company on January 1, 2015. The total fair value of the controlling interest and the noncontrolling interest on that date was 94,000 in...
-
The bus admittance matrix of a three-bus power system is given by with \(\mathrm{V}_{1}=1.0 \angle 0^{\circ}\) per unit; \(\mathrm{V}_{2}=1.0\) per unit; \(\mathrm{P}_{2}=60 \mathrm{MW} ;...
-
Global.asax is used for: a. declare application variables O b. all other answers are wrong O c. declare global variables O d. handle application events
-
Let R be the region under the graph of y = (x + 1) 1 for 0 x < . Which of the following quantities is finite? (a) The area of R (b) The volume of the solid obtained by rotating R about the x-axis...
-
Ms. Jacki Jerome, a famous rock superstar, dies on November 28, 2015, and leaves her entire estate, with a fair value of $23,400,000 (after settling all estate expenses and liabilities) to her cousin...
-
You serve as the executor for the estate of Maribeth Rainy. The following transactions occur during July 2015: a The Rainy estate included a certificate of deposit in the amount of $600,000. On the...
-
You serve as the executor for the estate of Matthew Troy. Matthew's will provides that all remaining assets other than specific items in the will pass to his longtime friend Melanie Matthews. The...
-
-> Let G and H be groups. A function : G H is called a (group) homomorphism if it satisfies (9192) = (91) * (92) for all 91, 92 G. (Note that the product 91*92 uses the group law in the group G,...
-
Complete the table for the point (2, 2). f(x) (2, 2) f(2x) 6f(2x) 6f(2(x+1))- -3
-
I hired a carpenter and an apprentice to do some work at my business. They worked two days. On the first day I was billed $210 for 11 hours of work by the main carpenter and for 7 hours of work by...
Study smarter with the SolutionInn App