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 | 2018 | ||||||
Revenues | $ | (920,000 | ) | $ | (1,050,000 | ) | |
Cost of goods sold | 614,000 | 654,000 | |||||
Depreciation and amortization | 104,000 | 128,000 | |||||
Gain on sale of building | 0 | (34,000 | ) | ||||
Interest expense | 44,000 | 44,000 | |||||
Consolidated net income | (158,000 | ) | (258,000 | ) | |||
to noncontrolling interest | 23,000 | 25,000 | |||||
to parent company | $ | (135,000 | ) | $ | (233,000 | ) | |
Retained earnings, 1/1 | $ | (314,000 | ) | $ | (385,000 | ) | |
Net income | (135,000 | ) | (233,000 | ) | |||
Dividends declared | 64,000 | 114,000 | |||||
Retained earnings, 12/31 | $ | (385,000 | ) | $ | (504,000 | ) | |
Cash | $ | 94,000 | $ | 188,000 | |||
Accounts receivable | 178,000 | 154,000 | |||||
Inventory | 214,000 | 368,000 | |||||
Buildings and equipment (net) | 654,000 | 722,000 | |||||
Databases | 178,000 | 159,000 | |||||
Total assets | $ | 1,318,000 | $ | 1,591,000 | |||
Accounts payable | $ | (156,000 | ) | $ | (118,000 | ) | |
Bonds payable | (414,000 | ) | (528,000 | ) | |||
Non controlling interest in Rivera | (46,000 | ) | (65,000 | ) | |||
Common stock | (126,000 | ) | (144,000 | ) | |||
Additional paid-in capital | (191,000 | ) | (232,000 | ) | |||
Retained earnings | (385,000 | ) | (504,000 | ) | |||
Total liabilities and equities | $ | (1,318,000 | ) | $ | (1,591,000 | ) | |
Additional Information for 2018
Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2018. (Use indirect method) (Negative amounts and amounts to be deducted should be indicated by a minus sign.)
BOLERO COMPANY AND CONSOLIDATED SUBSIDIARY RIVERA Consolidated Statement of Cash Flows Year Ending December 31, 2018 |
||
CASH FROM OPERATING ACTIVTIES |
||
Consolidated net income |
258000 |
|
Adjustment from accrual to cash: |
||
Depreciation and amortization |
128000 |
|
Gain on sale of building |
(34000) |
|
Decrease in accounts receivable (154000-178000) |
24000 |
|
Increase in inventory (214000-368000) |
(154000) |
|
Decrease in accounts payable (156000-118000) |
(38000) |
|
Net cash flow from operating activities |
184000 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
||
Sale of building (34000+44000) |
78000 |
|
Purchase of equipment |
(221000) |
|
Net cash flow from investing activities |
(143000) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
||
Dividends paid |
(144000) |
|
Issuance of bonds |
114000 |
|
Issuance of common stock (144000+232000)-(126000+191000) |
59000 |
|
Net cash flow from financing activities |
29000 |
|
Net increase in cash during 2018 |
70000 |
|
Cash, January 1, 2018 |
920000 |
|
Cash, December 31, 2018 |
1050000 |
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: $ 2017 (860,000) 602,000 92,000 0 32,000 (134,000) 11,000 (123,000) S 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...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: 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 payable Bonds payable Noncontrolling...
Bolero Company holds 70 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 (905,000) 611,000 101,000 0 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...
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...
Check my wor Hat Company holds 75 percent of the common stock of Ties, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: $ 2017 (935,000) 617.000 107.000 points eBook 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 incone Dividenda declared Retained earnings, 12/31 Print 3 2018 $1,065, 000) 657.000...
We were unable to transcribe this imageAdditional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and...
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 $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...
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. 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:...