Advanced accounting

Question 4: (Total 10 marks: 4 marks for a, 2 marks for b and 4 marks for c) Comparative consolidated balance sheet data for BIG Co and its 65% owned subsidiary LITTLE co are as follow: Item 2020 2019 Cash 12,000 25,000 Notes receivables (net) 60,000 43,000 Supplies inventory 90,000 50,000 PPE (net) 100,000 110,000 Patent 90,000 105,000 Totals 352.000 352,000 Accounts payable 80,000 68,000 Notes payable LT 5000 30,000 Non controlling interests 44,000 40,000 Common stock 10 $ par 205,000 205,000 Retained earnings 18,000 (10,000) Totals 352.000 352,000 Additional information : a- The consolidated net income for 2020 is 50,000 $. b- Little paid 10,000 $ in dividends during the year. Big paid 17,000 $ in dividends. - Little sold 16,000 $ of supplies to Big during the year. - There were no sales or purchases of long term assets during the year. Required : a. Compute the consolidated cash-flows from operating activities using indirect method. (4 marks) b. Compute the consolidated cash-flows from investing activities (2 marks) c. Compute the consolidated cash-flows from financing activities. (4 marks) Solution question 4: (Total 10 marks: 4 marks for a, 4 marks for question b and 2 marks for c) a. Consolidated cash-flows from operating activities. (4 marks) m b. Consolidated cash-flows from investing activities. (2 marks) c. Consolidated cash-flows from financing activities. (4 marks)