Problem

Alford Company and its 80 percent–owned subsidiary, Knight, have the following income st...

Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2014:

Additional Information for 2014

Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.

Unrealized inventory profits at January 1 were $6,000, but at December 31, they are $9,000.

Annual excess amortization expense resulting from the acquisition is $11,000.

Knight paid dividends totaling $20,000.

The noncontrolling interest’s share of the subsidiary’s income is $9,800.

During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.

Using either the direct or indirect method, compute net cash flows from operating activities during the period for the business combination.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search