Question

Metal Corporation acquired 75 percent ownership of Ocean Company on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Ocean Company. Consolidated balance sheets at January 1, 20X3, and December 31, 20X3, are as follows:


The consolidated income statement for 20X3 contained the following amounts:


Metal and Ocean paid dividends of $30,000 and $20,000, respectively, in 20X3.

Required
a. Prepare a worksheet to develop a consolidated statement of cash flows for 20X3 using the indirect method of computing cash flows from operations.
b. Prepare a consolidated statement of cash flows for20X3.


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  • CreatedMay 23, 2014
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