Consolidated Statement of Cash Flows Consolidated Balance Sheets Consolidated In
ID: 2821203 • Letter: C
Question
Consolidated Statement of Cash Flows
Consolidated Balance Sheets
Consolidated Income Statement
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.
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.
Use a negative sign with answers to indicate a decrease/reduction in cash.
Cash from operating activities
Add (subtract) items not affecting cash:
Depreciation expense
Goodwill impairment loss
Undistributed equity method income
Changes in current assets and liabilities:
Net cash from operating activities
Cash from investing activities
Sale of property, plant and equipment
Net cash used for investing activities
Cash from financing activities
Dividends paid to controlling shareholders
Dividends paid to noncontrolling shareholders
Net cash from financing activities
Net increase in cash
Plus cash balance, January 1
Cash balance, December 31
Consolidated Statement of Cash Flows
Here 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 $9,845,000Supplementary 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 SubsidiaryConsolidated Statement of Cash Flows
For the year 2020
Cash from operating activities
Answer $AnswerAdd (subtract) items not affecting cash:
Depreciation expense
AnswerGoodwill impairment loss
AnswerUndistributed equity method income
Answer Answer Answer AnswerChanges in current assets and liabilities:
Receivables Answer Inventories Answer Current liabilities Answer AnswerNet cash from operating activities
AnswerCash from investing activities
Answer AnswerSale of property, plant and equipment
AnswerNet cash used for investing activities
AnswerCash from financing activities
Answer AnswerDividends paid to controlling shareholders
AnswerDividends paid to noncontrolling shareholders
AnswerNet cash from financing activities
AnswerNet increase in cash
AnswerPlus cash balance, January 1
AnswerCash balance, December 31
Explanation / Answer
-27000
Opening balance 150000
Closing Balance 113000 (150000-27000)
Net profit 110000 Non Cash items Depriciation 250000 Goodwill 80000 330000 Non cash items Income Gains from FA 50000 60000 incomeform equity 10000 Operating cash 380000 Change in CL 25000 Change in CA 2000 403000 Cash from Investment activities FA purchased 1000000 FA sold 500000 -500000 Cash from Finacing activities Dividend received 75000 fund from LT 80000 Shareholder equity 0 Cahs dividend from equity 2000 Less dividend Paid 60000 Less dividend paid 15000 70000 Less equity investment 12000 Nest cash-27000