Pecan Corporation’s controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December 31, 20X4. Pecan owns 60 percent of Sandy Corporation’s stock, which it acquired at underlying book value on May 7, 20X1. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Sandy Corporation’s book value. You have been provided the following information:
There were no intercompany transfers between Pecan and Sandy in
20X4 or prior years except for Sandy’s payment of dividends. Pecan
uses the indirect method in preparing its cash flow statement.
Pecan uses the indirect method in preparing its cash flow
statement.
Required:
a. What amount of dividends was paid to the noncontrolling interest
during 20X4?
b. What amount will be reported as net cash provided by operating
activities for 20X4?
c. What amount will be reported as net cash used in investing
activities for 20X4?
d. What amount will be reported as net cash used in financing
activities for 20X4?
e. What was the change in cash balance for the consolidated entity
for 20X4?
Pecan Corporation’s controller has just finished preparing a consolidated balance sheet, income statement, and statement of...
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P7-24 Computation of Consolidated Net Income LO 7-3, 7-4 Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1, 20X4, for $122,400 when the fair value of Sack's net assets was $20,000 higher than its $116,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $13,600. During 20X4, Sack sold land to Package at a...
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