The Kerry Company and it's 85% owned subsidiary (Edwards Corporation) uses the DIRECT METHOD to prepare...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Kerry Company and it's 85% owned subsidiary (Edwards Corporation) uses the DIRECT METHOD to prepare its statement of cash flows. Consolidated TRIAL BALANCE totals are shown at the end of 20X3 and 20X2: December 31 20X3 20X2 Debits: Cash Accounts Receivable $35,000 $32,000 33,000 30,000 Inventory 31,000 47,000 PP&E 204,500 100,000 Cost of Goods Sold 250,000 380,000 Operating Expenses 272,500 318,300 Noncontrolling Interest Share 6,000 5,000 Interest Expense 4,300 2,600 Income Tax Expense 20,400 61.200 Total $856,700 $976,100 Credits: Allowance for Uncollectible Accounts $ 2,300 $ 1,100 Accumulated Depreciation Accounts Payable 16,500 15,000 13,300 9,500 Income Taxes Payable 21,000 27,100 Deferred Income Taxes 5,300 4,600 8% Bonds Payable 45,000 20,000 Common Stock 50,000 40,000 Additional Paid In Capital 9,100 7,500 Retained Earnings 44,700 64,600 Noncontrolling Interest 10,700 8,000 Sales 638.800 778,700 Total $856,700 $976,100 Additional Information: Net income for 20X3 was as follows: Consolidated net income $91,600 Controlling share of net income 85,600 Edwards Corporation 40,000 There was no change in the ownership interest in Edwards during 20X2 and 20X3. There were no intercompany transactions other than the dividend paid to Kerry by Edwards. Kerry declared and paid dividends of $31,500 during 20X3. Edwards declared and paid dividends of $22,000 during 20X3. Bad debts expense is included in Operating Expenses. No uncollectible accounts were written off in 20X3. Depreciation expense is also included in Operating Expenses. No P P & E was sold during 20X3. Prepare a statement of cash flows for the year ended December 31, 20X3 on the page provided. Use the DIRECT METHOD. The Kerry Company and it's 85% owned subsidiary (Edwards Corporation) uses the DIRECT METHOD to prepare its statement of cash flows. Consolidated TRIAL BALANCE totals are shown at the end of 20X3 and 20X2: December 31 20X3 20X2 Debits: Cash Accounts Receivable $35,000 $32,000 33,000 30,000 Inventory 31,000 47,000 PP&E 204,500 100,000 Cost of Goods Sold 250,000 380,000 Operating Expenses 272,500 318,300 Noncontrolling Interest Share 6,000 5,000 Interest Expense 4,300 2,600 Income Tax Expense 20,400 61.200 Total $856,700 $976,100 Credits: Allowance for Uncollectible Accounts $ 2,300 $ 1,100 Accumulated Depreciation Accounts Payable 16,500 15,000 13,300 9,500 Income Taxes Payable 21,000 27,100 Deferred Income Taxes 5,300 4,600 8% Bonds Payable 45,000 20,000 Common Stock 50,000 40,000 Additional Paid In Capital 9,100 7,500 Retained Earnings 44,700 64,600 Noncontrolling Interest 10,700 8,000 Sales 638.800 778,700 Total $856,700 $976,100 Additional Information: Net income for 20X3 was as follows: Consolidated net income $91,600 Controlling share of net income 85,600 Edwards Corporation 40,000 There was no change in the ownership interest in Edwards during 20X2 and 20X3. There were no intercompany transactions other than the dividend paid to Kerry by Edwards. Kerry declared and paid dividends of $31,500 during 20X3. Edwards declared and paid dividends of $22,000 during 20X3. Bad debts expense is included in Operating Expenses. No uncollectible accounts were written off in 20X3. Depreciation expense is also included in Operating Expenses. No P P & E was sold during 20X3. Prepare a statement of cash flows for the year ended December 31, 20X3 on the page provided. Use the DIRECT METHOD.
Expert Answer:
Answer rating: 100% (QA)
Statement of Cash Flows For the Year Ended December 31 20X3 Direct Method Operating Activities Cash ... View the full answer
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date:
Students also viewed these finance questions
-
Waubansee Corp. uses the direct method to prepare its statement of cash flows. Waubansees trial balances at December 31, 2010 and 2009 are shown below. Additional information: 1. Waubansee purchased...
-
Wabaunsee Corp. uses the direct method to prepare its statement of cash flows. Waubansee's trial balances at December 31, 2010 and 2009 are as follows. Additional information: 1. Wabaunsee purchased...
-
Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Loboss trial balances at December 31, 2008 and 2007, are as follows. Additional information: 1. Los Lobos purchased...
-
Vijay Company reports the following information regarding its production costs. Compute its production cost per unit under absorption costing. Direct materials.................................. $ 10...
-
News Corporation is one of the world's largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite, cable, and publishing...
-
Function Alternative Notation Domain Range 1. y = arcsin x ___________ ______ - / 2 y / 2 2. _______ y = cos 1 x - 1 x 1 ______ 3. y = arctan x ________ ______ _______0 4. A trigonometric...
-
Calculate the energy density versus temperature very early in the universe when the temperatures were above \(k T=300 \mathrm{MeV}\). At those temperatures, quarks and gluons were released from...
-
(Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences) The pretax financial income (or loss) figures for Synergetics Company are as follows. 2008 ...... $160,000 2009...
-
Direct Labor Budgeted $14,200, Actual $14,200, Indirect Labor Budgeted 5,800, Actual 5,400, Utilities Budgeted 1,900, Actual 2,200, Rent Budgeted 3500, Actual 3500, Marketing Budgeted 150, Actual...
-
The Profit & Gambit Co. has a major product that has been losing money recently because of declining sales. In fact, during the current quarter of the year, sales will be 4 million units below the...
-
Give the name of the peptide. Spell out the full name of the peptide. Hydrocarbon groups of selected amino acids The structures of the R groups of selected amino acids are shown in the following...
-
Consider the diagram of the solenoid shown below and the simplified differential equation attempting to describe its motion. Answer the following questions. m dx(t) dt + D dx(t) dt - Ki(t) = 0...
-
Find the Huffman code for given character set and their frequency. Using the Huffman code decode the message "0110111001010" A 5 B 25 C 7 D 5 E 4 F 12
-
(e) Perform these operations in 2's complement format: 10001100 +00010101 0100110111101011
-
What is the mapping cardinality of the following two attributes (X and Y)? Explain the reason X A1 A2 A3 A1 A4 Y B1 B1 B3 B4 B5
-
B. Write the following knowledgebase, then answer the following: Type of building Number of rooms villa 6 palace 15 suite 2 Price of room 2500 15000 1000 The owner's name Hamad Saad Naser * Is there...
-
14. (Center of Mass and Linear Momentum) You drop a 14g ball from a height of 1.5 m and it only bounces back to a height of 0.85 m. What was the total impulse on the ball when it hit the floor?...
-
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
-
Terry is an accountant at Hoffman Corporation. Her main function is to prepare production-cost reports for distribution to upper management. Her good friend Tracy is the production supervisor on one...
-
Cindy is the vice president of research and development for Johnson Soda Co. She submits a request for expense reimbursement each month, and Lori, the controller, has noticed that Cindys requests are...
-
A value chain for an airline such as Delta or American would typically include marketing and promotion, ticketing and reservations, airport operations, and aircraft operations. Required Outline the...
-
Please list possible definitions of the term embedded system!
-
How would you define the term cyber-physical system (CPS)? Do you see any difference between the terms embedded systems and cyber-physical systems?
-
What is the Internet of Things (IoT)?
Study smarter with the SolutionInn App