Question

Presented below are the consolidated work paper balances of Bush, Inc., and its subsidiary, Dorr Corporation, as of December 31, 2016 and 2015:
Additional information:
a. On January 20, 2016, Bush, Inc., issues 10,000 shares of its common stock for land having a fair value of $215,000.
b. On February 5, 2016, Bush reissues all of its treasury stock for $44,000.
c. On May 15, 2016, Bush pays a cash dividend of $58,000 on its common stock.
d. On August 8, 2016, equipment is purchased for $127,000.
e. On September 30, 2016, equipment is sold for $40,000. The equipment costs $62,000 and has a net book value of $34,000 on the date of the sale.
f. On December 15, 2016, Dorr Corporation pays a cash dividend of $50,000 on its common stock.
g. Deferred income taxes represent timing differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial reporting.
h. Net income for 2016 is as follows:
Controlling interest in consolidated net income. . . . . . . . . . . . . . . . $201,000
Dorr Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000
i. Bush, Inc., owns 70% of Dorr Corporation. There is no change in ownership interest in Dorr during 2015 and 2016. There are no intercompany transactions other than the dividend paid to Bush by its subsidiary.
Required
Prepare the statement of cash flows for the consolidated company using the indirect method. A cash analysis worksheet should be prepared to aid in the development of the statement. Any other supporting schedules should be in good form.


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  • CreatedApril 13, 2015
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