A consolidated income statement for 2011 and comparative consolidated balance

A consolidated income statement for 2011 and comparative consolidated balance sheets for 2010 and 2011 for P Company and its 80% owned subsidiary follow:

P COMPANY AND SUBSIDIARY

consolidated income statement

for the Year Ended December 31, 2011

Sales...............$1,900,000

Cost of goods sold.........1,000,000

Gross margin...........900,000

Expenses............300,000

Operating income before tax.....600,000

Dividend income..........50,000

Income before tax........550,000

Income taxes..........220,000

Consolidated net income...........330,000

Less: Noncontrolling interest in consolidated net income.66,000

Controlling interest in consolidated net income......$ 264,000


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Other information:
1. Equipment depreciation was $95,000.
2. Equipment was purchased during the year for cash, $545,000.
3. Dividends paid during 2011:
a. Declared and paid by S Company, $40,000.
b. Declared and paid by P Company, $60,000.
4. The bonds payable were issued on December 30, 2011, for $240,000.
5. Common stock issued during 2011, 150,000 shares.

Required:
Prepare a consolidated statement of cash flows for the year ended December 31, 2011, using the indirectmethod.

Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...

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