The following information has been taken from the consolidation worksheet of Peak and its 90 percentowned subsidiary,

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The following information has been taken from the consolidation worksheet of Peak and its 90 percent–owned subsidiary, Valley:
• Peak reports a $12,000 gain on the sale of a building. The building had a book value of $32,000 but was sold for $44,000 cash.
• Intra-entity inventory transfers of $129,000 occurred during the current period.
• Valley paid a $30,000 dividend during the year with $27,000 of this amount going to Peak.
• Amortization of an intangible asset recognized by Peak’s purchase was $16,000 for the current period.
• Consolidated accounts payable decreased by $11,000 during the year.

Indicate how to reflect each of these events on a consolidated statement of cash flows.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  answer-question

Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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