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On June 30, 2018, Plaster, Inc., paid $844,000 for 80 percent of Stucco Companys outstanding stock. Plaster assessed the acqAt the end of 2018, the following comparative (2017 and 2018) balance sheets and consolidated income statement were availablePrepare a 2018 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows f

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Answer #1
PLASTER INC. AND SUBSIDIARY STUCCO COMPANY
Consolidated Statement of Cash Flows
For the year ended December 31,2018
Cash Flows from Operating Activities
Consolidated Net Income 250690
Add: Interest and other expenses 8900
Depreciation 171500
Database amortisation 8010
Operating Cash Flows Before Working Capital Changes 439100
Add: Increase in Current Liabilities 0
Decrease in Current assets
Accounts Receivable 4400
Less: Increase in Current Assets
Inventory -91300
Decrease in Current Liabilities 0
Accounts Payable -7600
Net Working Capital Changes -94500
Net Cash Inflows/(Outflow) from Operating Activities 344600
Cash Flows from Investing Activities
Acquisition of subsidiary -844000
Net Cash Inflows/(Outflow) from Investing Activities -844000
Cash Flows from Financing Activities
Dividend paid
Plaster Inc -164000
Subsidiary -9440 -173440
(Note: Dividend received by Plaster Inc. From subsidiary excluded/ netted off)
Long term debt raised 809040
Interest and other expenses -8900
Net Cash Inflows/(Outflow) from Financing Activities 626700
Net Cash Inflows / (outflows) 127300
Beginning Cash on 1/1/18 94600
Plaster Inc 39300
Subsidiary 55300
Ending Cash on 12/31/18 221900
Workings:
Particulars 2017 2018
Subsidiary Plaster Inc Total Consolidated Changes
Inventory 187200 379300 566500 657800 91300
Accounts Receivable 117100 330800 447900 443500 -4400
Land 60000 274200 334200 334200 0
Building 161500 223900 385400 338700 -46700
Equipments 346000 1645000 1991000 1865200 -125800
Database 160200 0 160200 152190 -8010
0
0
Accounts Payable 32300 73200 105500 97900 -7600
Long term liabilities 366000 366000 1175040 809040
Non controlling interest 0 233800 233800
Retained earnings 806300 806300 859750 53450
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