Question

2. Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2012 and 2013. 2012 $ 1,064.000 (714,000) ( 126,000) Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest 2013 $ 1,232.000 (756,000) (140,000) 28.000 ( 42.000) $ 15,400 $ 306,600 $ $ 42.000) 12.600 169,400 $ Retained earnings, January 1 Net income (from above) Dividends paid Retained earnings, December 31 420,000 169,400 70,000) 519,400 $ 519,400 306,600 ( C140,000) $ 686,000 $ Cash Accounts receivable Inventory Buildings and equipment (net) Database Total assets 112,000 210,000 280,000 896,000 210,000 1,708,000 $ 196,000 196,000 476,000 966,000 203,000 $2,037,000 $ Accounts payable Bonds payable Non-controlling interest in Brewer Inc. Common stock Additional paid-in capital Retained earnings, December 31 (from above) Total liabilities and stockholders' equity $ (196,000) $ (140,000) (560,000) (720,000) ( 44,800) (57,400) (140,000) (168,000) (247,800) (265,600) (519,400) (686,000) $ (1,708,000) $ (2,037,000)

Answer 1

Answer The Allen co held sol The common stock of Brewer 401 Consolidated financial statement Allen co And Brewer Inc statement of cash flows - Direct Method year endung December 31/2010 Cash flows from operating activites = 1246000 cash recevied from customer Cash payment To Suppliers - 1,008,000 For increased expense = 42000 2 1 050 000 Net cash provided by operating adivita = 1246 000-1050000 = 196000

Cash flow from investing activitas Produced from sales for building - 70000 Purchased of equipment - 245000 Net cash used by investing activities = 175000 Cash flow from financing activities Payment of cash dividends = 142800 Issance of boads - 160000 Issance of common stock = 45800 Net increase cash provided by financial activites Nel increase in cash 94000 cash 1101/2010 = 11200 63000 o cash 31/12/210 = 196000 The statement use the direct method calcetine cash flow operating activities direct method a conciliation of het income lo net cash operating prescation of cash flow the indirect method re

statement of cash flow indered method the year ending December 31, 2010 Cash flow from operating activites Net income - 322000 Adjustment to reconcile net income to ne cash operating activities Depercilion expenses = 133000 Amortization of data base 27000 Grain on sale of building : 28000 Decrease in account recevable 214000 Increase in inventay - 196000 De Grease in accounts payable - 56000 $126000 Nel cash provided by operating activities 7196000