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E10-5 Preparation of Statement of Cash Flows The accountant for Consolidated Enterprises Inc.

E10-5 Preparation of Statement of Cash Flows
The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash flows for the consolidated entity. Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing. The following items are proposed
for inclusion in the consolidated cash flow statement:
Decrease in accounts receivable               $ 23,000
Increase in accounts payable                     5,000
Increase in inventory                           15,000
Increase in bonds payable                       120,000
Equipment purchased                             380,000
Common stock repurchased                         35,000
Depreciation reported for current period         73,000
Gain recorded on sale of equipment                8,000
Book value of equipment sold                     37,000
Goodwill impairment loss                          3,000
Sales                                           900,000
Cost of goods sold                              368,000
Dividends paid by parent                         60,000
Dividends paid by subsidiary                     30,000
Consolidated net income for the year            450,000
Income assigned to the noncontrolling interest   14,000
Required
Prepare in good form a statement of cash flows for Consolidated Enterprises Inc. using the indirect method of computing income from operations.
E10-6 Direct Method Cash Flow Statement
Using the data presented in E10-5, prepare a statement of cash flows for Consolidated Enterprises Inc.using the direct method of computing cash flows from operating activities.

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