Advanced Financial Accounting - Basic Cash Flow Statement

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Below, a comparative balance sheet for 1996 and 1995 are reprinted as at December 31 year-end. The Parent and the 70% stake Subsidiary are shown in the Balance Sheet.

 

Q Ltd.

Comparative Balance Sheet

 

 

Consolidated 1996

Consolidated 1995

Assets

Cash

$ 790

$ 840

Accounts receivable

620

710

Inventory

990

490

Plant and Equipment

4,800

5,100

Accumulated depreciation

(1,800)

(1,980)

Goodwill

360

396

Total assets

$ 5,760

$ 5,556

Liabilities

Current liabilities

$ 1,250

$ 1,780

Accrued liabilities

$ 288.4

$ 120

Long term liabilities

$ 2,160

$ 2,100

Total liabilities

3,698.4

4,000

Non-controlling interest

345.6

336

Common shares

1,000

900

Retained earnings

716

320

Total equities

2,061.6

1,556

Total Liabilities and equities

$ 5,760

$ 5,556

 

Details:

·         In 1996 the subsidiary company paid dividends totaling $96,000

·         Net income for 1996 was $480,000

·         There was no change in Parent’s 70% interest during the year.

·         Equipment that was worn out and obsolete was sold for $10,000 at the end of the year. The equipment originally cost $600,000 and had a net book value of $65,000 on the date it was retired.

 

Using the information above, produce a consolidated cash flow statement (IFRS, Canada).

    • 5 years ago
    Consolidated Cash Flow Statement
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