10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected...

  
 

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10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac) 10.5 points Plaster, Inc., holds 80 percent of Stucco Company's outstanding common stock. The following selected consolidated financial statements information are for 2019 and 2020 (credit balances indicated by parentheses): Plaster, Inc., and Consolidated Subsidiary Stucco 2019 2020 Retained naminns 1/1 Plaster, Inc., and Consolidated Subsidiary Stucco 2019 Retained earmings, 1/1 $(620,000) (262,000) $(762,000) $180,000 2020 $(762,000) (338,000) S(880,000) $240,000 Net income Retained eamings, 12/31 Cash Accounts receivable 340,000 300,000 Inventory Buildings and equipment (net) Databases 420,000 720,000 1,420,000 310,000 $(220,000) 1,300,000 Accounts payable Bonds payable 340,000 $(320,000) (820,000) (1,040,000) (122,000) (280,000) Noncontrolling interest in Stucco (84,000) Common stock (220,000) (374,000) Additional paid-in capital (448,000) $(2,060,000) 1,300,000 Revenues $(1,800,000) Cost of goods sold Depreciation and amortization Loss on sale of equipment Interest expense 1,220,000 200,000 240,000 -0- 60,000 80,000 80,000 Consolidated net income: to noncontrolling interest to parent company 38,000 42,000 $(262,000) $(338,000) Additional Information for 2020: o The subsidiary purchased a building on 10 April for $410,000 in cash. e Amortization of databases amounts to $30,000 per year. • The parent issued stock for cash on 1 July. • The parent sold equipment with a cost of $160,000 but a $80,000 book value for cash on August 20. o During the year, the subsidiary paid dividends of $20,000. Both parent and subsidiary pay dividends in the same year as declared. • The parent issued bonds during the year for cash • The only changes affecting retained earnings are net income and cash dividerds paid. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2020, using the indirect method For the toolbar, press ALT F10 (PC) or ALT FN+F1O (Mac)

Answer rating: 100% (QA)

Preparation of consolidated statement of cash flow for year ended 31 december 2020 Plaster Company a... View the full answer