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).

    • 10 years ago
    Consolidated Cash Flow Statement
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