E10-6 Direct Method Cash Flow Statement LO 10-1 The accountant for Consolidated Enterprises Inc has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash flows for the consolidated entity Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing The following items are proposed for inclusion in the consolidated cash flow statement Decrease in accounts receivable Increase in accounts payable Increase in Inventory Increase in bonds payable Equipment purchased Con stock repurchased Depreciation reported for current period Gain recorded on sale of equipment Bok value of equipment sold Goodwal impairment loss Sales cost of goods sold Dividends paid by parent Dividends paid by subsidiary Consolidated net income for the year Income assigned to the noncontrolli interest $ 17,000 7.000 24,000 140,000 384.00 25,000 53,000 11.00 37,000 2.000 920,000 332.000 45,000 40,000 539,000 10,000 Required: Prepare a statement of cash flows for Consolidated Enterprises Ine using the direct method of computing cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) CONSOLIDATED ENTERPRISES INC. AND SUBSIDIARY Consolidated Statement of Cash Flows For the Year Ended December 31, 20X3 Cash Flows from Operating Activities Cash payments to suppliers 5 349.000 Cash received from customers 937000 3 1,286 000 Net cash provided by operating activities Cash Flows from investing Activities Equipment purchased $ 140,000 Required: Prepare a statement of cash flows for Consolidated Enterprises Inc using the direct method of computing cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign) CONSOLIDATED ENTERPRUSES INC. AND SUBSIDIARY Consolidated Statement of Cash Flows For the Year Ended December 31, 20X3 Cash Flows from Operating Activities Cash payments to suppliers Cash received from customers 5 319,000 937 000 5 1 285 000 Net cash provided by operating activities Cash Flows from investing Activities Equipment purchased Sale of equipment $ 140,000 11,000 151,000 Net cash used in Investing activities Cash Flows from Financing Activities Sale at bonds Repurchase of common stock Dividends Pald Te parent company shareholders To noncontrolling shareholders Net cash used in financing activities Not increase in cash 0 $ 1437 000