Alford Company and its 80 percentowned subsidiary, Knight, have the following income statements for 2024: Additional Information
Question:
Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2024:
Additional Information for 2024∙ Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.∙ Intra-entity gross profits in inventory at January 1 were $6,000, but at December 31 they are $9,000.∙ Annual excess amortization expense resulting from the acquisition is $11,000.∙ Knight paid dividends totaling $20,000.∙ The noncontrolling interest’s share of the subsidiary’s income is $9,800.∙ During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.Using either the direct or indirect method, compute net cash flows from operating activities during the period for the business combination.
Step by Step Answer:
Fundamentals Of Advanced Accounting
ISBN: 9781266268533
9th International Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik