Question

Consolidated Statement of Cash Flows Here are the consolidated financial statements of Post Ranch Resort and...

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 $9,845,000

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.

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 Subsidiary
Consolidated Statement of Cash Flows
For the year 2020

Cash from operating activities

Answer $Answer

Add (subtract) items not affecting cash:

Depreciation expense

Answer

Goodwill impairment loss

Answer

Undistributed equity method income

Answer
Answer Answer Answer

Changes in current assets and liabilities:

Receivables Answer
Inventories Answer
Current liabilities Answer Answer

Net cash from operating activities

Answer

Cash from investing activities

Answer Answer

Sale of property, plant and equipment

Answer

Net cash used for investing activities

Answer

Cash from financing activities

Answer Answer

Dividends paid to controlling shareholders

Answer

Dividends paid to noncontrolling shareholders

Answer

Net cash from financing activities

Answer

Net increase in cash

Answer

Plus cash balance, January 1

Answer

Cash balance, December 31

Homework Answers

Answer #1
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

Opening balance 150000

Closing Balance 113000 (150000-27000)

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