Question

P5.9 Please help!
Sunny Valley Resort has owned 80% of Mountain Lodging Inc since Mountain Lodging's inception. The condensed consolidated balance sheets of Sunny Valley Resort at December 31, 2020 and 2019 and other relevant information follow:

Required:
Prepare, in good form, a consolidated statement of cash flows for 2020.

Example problem to go off of for formatting... I hope this helps!!

SUNNY VALLEY RESORT AND SUBSIDIARY Condensed Consolidated Balance Sheets December 31 (in thousands) 2020 2019 Assets Cash $600,000 $500,000 1,450,000 1,400,000 Plant assets, net. Goodwill 2,500,000 2,900,000 300,000 320,000 Total assets $4,800,000 $5,170,000 Liabilities and Shareholders' Equity Current liabilities. Noncurrent liabilities. $1,282,000 $1,266,000 1,800,000 2,500,000 Shareholders' equity-controlling interest. 1,430,000 1,130,000 Noncontrolling interest 288,000 274,000 Total liabilities and shareholders' equity $4,800,000 $5,170,000 Additional information for 2020 (in thousands): 1. Consolidated net income to the controlling interest is $350,000. 2. Mountain Lodging reported net income of $150,000 on its own books, and paid $80,000 in dividends. 3. Consolidated depreciation expense was $600,000 4. Plant assets with a book value of $200,000 were retired from service and serapped. Goodwill was impaired by $20,000 5. Sunny Valley paid $50,000 in dividends. Chapter 5 Consolidated Financial Statements: Outside Intero aIT 5.7 Admiral and Gold Road Consolidated Financial Statements ADMIRAL CASINO & RESORT Comparative Consolidated Balance Sheets December 31 2019 2018 Assets Cash eivables Inventory $ 3,400,0003,150,000 8,800,000 8,980,000 9,300,000 2,830,000 Total current assets 21,180,000 Equity investments Plant and equipment, net.. Identifiable intangibles 15,280,000 54,000,000 299,000,000 582,500,000 35,300,000 45,000,000 315,000,000 603,750,000 Total noncurrent assets 970,800,000 999,250,000 Total assets $991,980,000 $1,014,530,000 Liabilities and Shareholders' Equity Liabilities Current liabilities Long-term debt $25,000,000 20,000,000 914,920,000 949,950,000 Total liabilities 939.920,000 369,950,000 Shareholders' equity Admiral shareholders' equity Capital stock Retained earnings 5,000,000 3,955,0DD 32B,000 5,000,000 30,325,000 Accumulated other comprehensive income 296,000 Total Admiral shareholders' equity Noncontrolling interest. . . 42,283,000 35,621,000 8,959.000 9,777,000 Total shareholders equity 52,060,000 44,580,000 Total liabilities and shareholders' equity $991,980,000 $1,014,530,000 ADMIRAL CASINO & RESORT Consolidated Statement of Income and Comprehensive Income For Year Ended December 31, 2019 $780,000,000 530,000,000) Sales and other income Less: Cost of goods sold . .. 250,000,000 Gross profit Less: Goodwill impairment loss Other operating expenses (200,000) 9,550,000 (920,000) Consolidated net income $ 8,630,000 Net income attributable to Admiral $ 9,550,000 30,000 Consolidated net income Plus: Other comprehensive income 9,580,000 Consolidated comprehensive income Less: Noncontrolling interest in comprehensive income Comprehensive income attributable to Admiral $ 8,662,000 Other operating expenses include $30,000,000 depreciation expense on plant and equipment and $21,250,000 amortization expense on intangibles. Consolidated accumulated depreciation on plant and equipment for 2019 and 2018 is $175,000,000 and $160,000,000, respectively 2. Sales and other income includes $3,000,000 gain on cash sales of plant and equipment. Cash acquisitions of plant and equipment for 2019 were $40,000,000. . Sales and other income includes $10,000,000 income from equity method investments; $1,000,000 in cash dividends was received from those investments 5. Cash d 2019 totaled $500,000 Supplementary information Other comprehensive income of $30,000 is an unrealized gain on revaluation of hedge investments the long-term debt balance. paid by Admiral during 2019 totaled $2,000,000. Cash dividends paid by Gold Road during Consolidated Financial Statements: Outside Interests hapter 5 . Admiral and Gold Road Consolidated Statement of Cash Flows EXHIBIT 5.8 ADMIRAL CASINO & RESORT Consolidated Statement of Cash Flows For Year Ended December 31, 2019 Cash from operating activities Consolidated net income.... Add (subtract) items not affecting cash: Depreciation expense Amortization expense Goodwill impairment loss Undistributed equity method income . . $ 9,550,000 30,000,000 21,250,000 200,000 (9,000,000) 42,450,000 Changes in current assets and liabilities Decrease in receivables 500,000 (6,150,000) 5,000,000 Increase in inventory. Increase in current liabilities . (650,000) . . . Nonoperating item Gain on sale of plant and equipment. (3,000,000) 48,350,000 Net cash flows from operating activities Cash from investing activities Acquisition of plant and equipment.... Sale of plant and equipment (1). (40,000,000) 29,000,000 (11,000,000) Cash from financing activities Net decrease in long-term debt. . Dividends paid to controlling shareholders . Dividends paid to noncontrolling shareholders. . (35,000,000) (2,000,000) (100,000) (37,100,000) 250,000 3,150,000 Net increase in cash.... Cash balance, January 1.. $ 3,400,000 Cash balance, December 31 (1) Cost of plant and equipment sold $41,000,000 ($315,000,000 $160,000,000)+ $40,000,000 ($299,000,000 $175,000,000). Accumulated depreciation on plant and equipment sold $15,000,000 $160,000,000 $30,000,000 $175,000,000. Thus book value of plant and equipment sold $41,000,000 $15,000,000 $26,000,000. Book value+ gain on sale - cash received; $26,000,000+$3,000,000 $29,000,000.

Answer 1

Sunny Valley Resort and Subsidiary Consolidated Statement of Cash Flows For the Year Ended December 31, 2020 (in thousands) Cash from Operating Activities Consolidated Net Income 380,000 Add (Subtract) items not effecting cash: Depreciation expense 600,000 Goodwill Impairment Loss 20,000 Loss on retirement of Plant Assets 200,000 820,000 Changes in current Assets and Liabilities Decrease in Other Current Assets (1,400,000 1,450,000) 50,000 Increase in Current Liabilities (1,282,000 1,266,000) 16,000 66,000 Net cash Flows from Operating Activities 1,266,000 Cash From Investing Activities (400,000) Acquisition of Plant Assets Cash From Financing Activities Decrease in Noncurrent Liabilities (1,800,000 2,500,000) 700,000) Dividends paid to controlling shareholders (50,000) Dividends paid to noncontrolling shareholders (16,000)(766,000) Net Increase in Cash 100,000 Cash Balance, January 1 500,000 Cash Balance, December 31 600,000

Working Notes: 1) Calculation of Consolidated Net Income Consolidated Net Income to Controlling Interest 350,000 Add: Net Income to Noncontrolling Interest (150,000 x 20%) 30,000 Consolidated Net Income 380,000 2) Acquisition of Plant Assets Plant Assets, net as on 2020 2,500,000 Add: Book value of Plant assets retired 200,000 Add: Depeciation expense 600,000 Less: Plant Assets, net as on 2019 (2,900,000) Acquisition of Plant Assets 400,000 3) Dividends to Noncontrolling Interest Dividend declared by Mountain Lodging 80,000 Dividend paid to Noncontrolling Interest (80,000 x 20%) 16,000