On June 30, 2013, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company's outstanding stock. Plaster
Question:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Accounts receivable . . . . . . . . . . . . . . . 127,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . 203,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000
Buildings . . . . . . . . . . . . . . . . . . . . . . . 175,000
Equipment . . . . . . . . . . . . . . . . . . . . . . 300,000
Accounts payable . . . . . . . . . . . . . . . . . (35,000)
On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:
Equipment (3-year life) . . . . . . . . . . . . . $ 75,000
Database (10-year life) . . . . . . . . . . . . . 175,000
At the end of 2013, the following comparative (2012 and 2013) balance sheets and consolidated income statement were available:
Additional Information for 2013
¢ On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.
¢ During the year, Plaster issued $800,000 in long-term debt at par.
¢ Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.
Prepare a 2013 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Question Posted: