On June 30, 2018, Plaster, Inc., paid $868,000 for 80 percent of Stucco Company's outstanding stock....

Question

Question

On June 30, 2018, Plaster, Inc., paid $868,000 for 80 percent of Stucco Companys outstanding stock. Plaster assessed the acq $ $ $ $ Database Total assets Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings T

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.

CASH FROM OPERATING ACTIVTIES
Consolidated net income			$ 256,780
Adjustment from accrual to cash:
Depreciation			$ 175,400
Database Amortization			$ 8,220
Decrease in accounts receivable	$120,400+$338,300-$453,700		$ 5,000
Decrease in inventory	$192,600+$388,000-$672,800		$ (92,200)
Decrease in accounts payable	$100,300-$33,200-$75,000		$ (7,900)
Net cash flow from operating activities			$ 345,300

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Sutco	$868,000 Purchase price-$56,800 Subs Cash balance	$ (811,200)

Net cash flow from investing activities			$ (811,200)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid	$52,000+$49,600*20%	$ (61,920)
Issuance of Long term debt		$ 714,620

Net cash flow from financing activities			$ 652,700
Net increase in cash during 2018			$ 186,800
Cash, January 1, 2018	Only of Parent Company		$ 40,200
Cash, December 31, 2018			$ 227,000	$ -

Add a comment

Answer 2

Similar Homework Help Questions

On June 30, 2018, Plaster, Inc., paid $844,000 for 80 percent of Stucco Company's outstanding stock....

On June 30, 2018, Plaster, Inc., paid $844,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $211,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $ 55,300 117,100 187,200 60,000 161,500 276,800 (32,300) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment...
On June 30, 2018, Plaster, Inc., paid $868,000 for 80 percent of Stucco Company's outstanding stock....

On June 30, 2018, Plaster, Inc., paid $868,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $217,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash $ 56,800 Accounts receivable 120,400 Inventory 192,600 Land 61,800 Buildings 166,300 Equipment 284,900 Accounts payable (33,200 ) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:...
On June 30, 2018, Plaster, Inc., paid $908,000 for 80 percent of Stucco Company's outstanding stock....

On June 30, 2018, Plaster, Inc., paid $908,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $227,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash $ 59,300 Accounts receivable 125,900 Inventory 201,600 Land 64,800 Buildings 174,300 Equipment 298,400 Accounts payable (34,700 ) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:...

On June 30, 2018, Plaster, Inc., paid $804,000 for 80 percent of Stucco Company's outstanding stock....

On June 30, 2018, Plaster, Inc., paid $804,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $201,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash $ 52,800 Accounts receivable 111,600 Inventory 178,200 Land 57,000 Buildings 153,500 Equipment 263,300 Accounts payable (30,800 ) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:...
On June 30, 2018, Plaster, Inc., paid $940,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed t...

On June 30, 2018, Plaster, Inc., paid $940,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition date fair value of the 20 percent noncontrolling interest at $235,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable $ 61,500 130,300 208,400 66,800 179,800 308,100 (35,900) On June 30, Plaster allocated the excess acquisition date fair value over book value to Stucco's assets as...
The Holtz Corporation acquired 80 percent of the 100.000 outstanding voting shares of Devine, Inc., for...

The Holtz Corporation acquired 80 percent of the 100.000 outstanding voting shares of Devine, Inc., for $7.35 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.35 per share before and after Holtz's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine's underlying accounts except that a building with a 5-year future life was undervalued by $70,000 and a fully amortized trademark...

On January 1, 2018, Johnsonville Enterprises, Inc. acquired 80 percent of Stayer Company's outstanding common shares in...

On January 1, 2018, Johnsonville Enterprises, Inc. acquired 80 percent of Stayer Company's outstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percent ownership interest was proportionately representative of the fair value of all of Stayer's shares. At acquisition date, Stayer's books showed assets of $4,200,000 and liabilities of $1,600,000. The recorded assets and liabilities had fair values equal to their individual book values except that a building (10-year remaining life) with book value of...
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for...

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.80 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $6.80 per share before and after Holtz's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine's underlying accounts except that a building with a 5-year future life was undervalued by $84,000 and a fully amortized trademark...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's con...

Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018 2017 (850,000 600,000 90,000 Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets Accounts...

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for...

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.10 per share on January 1, 2017. The remaining 20 percent of Devine’s shares also traded actively at $6.10 per share before and after Holtz’s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine’s underlying accounts except that a building with a 5-year future life was undervalued by $67,500 and a fully amortized trademark...

On June 30, 2018, Plaster, Inc., paid $868,000 for 80 percent of Stucco Company's outstanding stock....

Homework Answers