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AC563-Advanced Financial Accounting
Consolidated Statement of Cash Flows
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Write My Essay For MeHere are the consolidated financial statements of Post Ranch Resort and its 70 percent owned subsidiary, Sandpearl, for the year ended December 31, 2020, plus supplementary information. Comparative balance sheets are provided for 2019 and 2020.
Consolidated Balance Sheets Consolidated Income Statement
December 31 2020 2019 Sales and other income $250,000,000
Cash $150,000 $113,000 Cost of sales -170,000,000
Receivables 325,000 310,000 Operating expenses -79,800,000
Inventories 1,400,000 1,450,000 Consolidated net income 200,000
Equity method investments 200,000 192,000 Noncontrolling interest in net income -90,000
Property, plant and equipment, net 5,000,000 4,700,000 Net income to controlling interest $110,000
Goodwill 3,000,000 3,080,000
Total assets $10,075,000 $9,845,000
Current liabilities $450,000 $425,000
Long-term liabilities 8,200,000 8,120,000
Shareholders’ equity to Post Ranch 1,185,000 1,135,000
Noncontrolling interest in Sandpear 240,000 165,000
Total liabilities and equity $10,075,000 $9,845,000
Supplementary information for 2020:
1. Sandpearl paid $50,000 in cash dividends. Post Ranch paid $60,000 in cash dividends.
2. Operating expenses include depreciation expense of $250,000 and goodwill impairment losses of $80,000.
3. Sales and other income includes $50,000 gain on sale of property, plant and equipment and $10,000 equity in net income from equity method investees. Cash dividends received from equity method investees were $2,000.
4. Accumulated depreciation balances on December 31, 2020 and 2019 were $1,200,000 and $1,100,000, respectively.
5. Property, plant and equipment of $1,000,000 was purchased for cash.
Required
Prepare Post Ranch’s consolidated statement of cash flows for 2020, in good form. Use the indirect approach to display cash from operating activities.
Use a negative sign with answers to indicate a decrease/reduction in cash.
“Post Ranch Resort and Subsidiary
Consolidated Statement of Cash Flows
For the year 2020”
Cash from operating activities
Answer $Answer
Add (subtract) items not affecting cash:
Depreciation expense Answer
Goodwill impairment loss Answer
Undistributed equity method income Answer
Answer Answer Answer
Changes in current assets and liabilities:
Receivables Answer
Inventories Answer
Current liabilities Answer Answer
Net cash from operating activities Answer
Cash from investing activities
Answer Answer
Sale of property, plant and equipment Answer
Net cash used for investing activities Answer
Cash from financing activities
Answer Answer
Dividends paid to controlling shareholders Answer
Dividends paid to noncontrolling shareholders Answer
Net cash from financing activities Answer
Net increase in cash Answer
Plus cash balance, January 1 Answer
Cash balance, December 31
Skills Required:
