Question

Rodriguez Company holds 80 percent of the common stock of Molina, Inc., and 30 percent of this subsidiary’s convertible bonds. The following consolidated financial statements are for 2010 and 2011:


Additional Information for 2011
• The parent issued bonds during the year for cash.
• Amortization of databases amounts to $5,000 per year.
• The parent sold a building with a cost of $60,000 but a $30,000 book value for cash on May 11.
• The subsidiary purchased equipment on July 23 using cash.
• Late in November, the parent issued stock for cash.
• During the year, the subsidiary paid dividends of $10,000.
Prepare a consolidated statement of cash flows for this business combination for the year ending
December 31, 2011. Either the direct or the indirect approach may beused.


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  • CreatedOctober 04, 2014
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