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Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of...

Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,00BOLERO COMPANY AND CONSOLIDATED SUBSIDIARY RIVERA Consolidated Statement of Cash Flows Year Ending December 31, 2018 Cash fro


Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and subsidiary pay dividends in the same year as declared. Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2018. (Use indirect method) (Negative amounts and amounts to be deducted should be indicated by a minus sign.)
BOLERO COMPANY AND CONSOLIDATED SUBSIDIARY RIVERA Consolidated Statement of Cash Flows Year Ending December 31, 2018 Cash from operating activities: Consolidated net income Adjustment from accrual to cash Depreciation and amortization Gain on sale of building Decrease in accounts receivable Increase in inventory Decrease in accounts payable Net cash flow from operating activities Cash flows from investing activities Sale of building Purchase of equipment Net cash flow from investing activities Cash flows from financing activities Dividends declared Issuance of bonds Issuance of common stock Net cash flow from financing activities et increase in cash during 2018 Cash, January 1, 2018 Cash, December 31, 2018 0
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ReportAnswer #1
Consolidated statement of cash flow
year ending december 31, 2018
Cash from operating activities
Consolidated net income 272000
adjustment from accrual to cash
depreciation & amortization 142000
gain on sale of building -41000
decrease in accounts receivable 31000
increase in inventory -161000
decrease in accounts payable -31000
net cash flow from operating activities 212000
Cash flow from investing activities
Sale of building 92000
purchase of equipment -249000
net cash flow from investing activities -157000
Cash flow from financing activities
dividend declared (25%*52000+121000) -134000
issuance of bonds 121000
issuance of common stock(11000+48000) 59000
net cash flow from financing activities 46000
Net increase in cash 101000
cash at january 1 2018 101000
cash , december 31, 2018 202000

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