Chapter 10 Homework Solutions

Chapter 10 Homework Solutions - E10-2 Becon Croporation and...

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E10-2 Becon Croporation and Subsidiary Consolidated Statement of Cash Flows for the year ended December 31, 20X4 Cash flows from operating activities: Consolidated net income 271,000 Adjustments to reconcile consolidated net income to cash from operating activities: Depreciation expense 21,000 Amortization expense 13,000 Gain on retirement of bonds (4,000) Loss on sale of land 8,000 Decrease in A/R 32,000 Increase in inventory (16,000) Decrease in A/P (12,000) Increase in wages payable 7,000 Net cash provided by operating activities 320,000 b. Cash flows from investing activities: Purchases of equipment (295,000) Proceeds from sale of land 134,000 Net cash used by investing activities (161,000) c. Cash flows from financing activities: Cash dividends paid (25,000) Cash dividends paid to noncont. interest (6,000) a. (40% of $15,000) Proceeds from sale of stock 150,000 Cash paid to retire bonds (200,000) Net cash used by financing activities (81,000) d. Net change in cash 78,000 e. E10-5 Consolidated Enterprises, Inc. and Subsidiary Consolidated Statement of Cash Flows for the year ended December 31, 20X3 Cash flows from operating activities: Consolidated net income 464,000 Adjustments to reconcile consolidated net income to cash from operating activities: Depreciation expense 73,000 Gain on sale of equipment (8,000) Loss on goodwill impairment 3,000 [A noncash loss that must be und Decrease in A/R 23,000 Increase in inventory (15,000) Increase in A/P 5,000 Net cash provided by operating activities 545,000 Cash flows from investing activities: Purchases of equipment (380,000) Proceeds from sale of equipment 45,000 [$37,000 book value plus $8,000 Net cash used by investing activities (335,000)
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Cash flows from financing activities: Cash dividends paid (60,000) Cash dividends paid to noncont. interest
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This note was uploaded on 04/12/2011 for the course ACC 5120 taught by Professor Weimer during the Fall '10 term at Wayne State University.

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Chapter 10 Homework Solutions - E10-2 Becon Croporation and...

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