The following comparative consolidated trial balances apply to Pembina Company and its subsidiary Scranton Company (80% interest) for the fiscal year ended 12/31/X5:
The following events occurred during the year:
a)No trading securities were sold nor were any investments added to the portfolio.
b)Sold land, book value $25,000, for $80,000.
c)Purchased equipment with a cost of $50,000 to replace equipment, book value $13,000, that was sold for $10,000.
d)Dividends declared and paid: Pembina $50,000; Scranton $40,000.
e)Consolidated net income: $234,000.
Required:
Prepare the consolidated statement of cash flows for the year ended December 31, 20X5, for Pembina and its subsidiary.

Question

The following comparative consolidated trial balances apply to Pembina Company and its subsidiary Scranton Company (80% interest) for the fiscal year ended 12/31/X5:  
The following events occurred during the year:
a)No trading securities were sold nor were any investments added to the portfolio.
b)Sold land, book value $25,000, for $80,000.
c)Purchased equipment with a cost of $50,000 to replace equipment, book value $13,000, that was sold for $10,000.
d)Dividends declared and paid: Pembina $50,000; Scranton $40,000.
e)Consolidated net income: $234,000.
Required:
Prepare the consolidated statement of cash flows for the year ended December 31, 20X5, for Pembina and its subsidiary.

Quizplus · Accepted Answer

The Answer of The following comparative consolidated trial balances apply to Pembina Company and its subsidiary Scranton Company (80% interest) for the fiscal year ended 12/31/X5:  
The following events occurred during the year:
a)No trading securities were sold nor were any investments added to the portfolio.
b)Sold land, book value $25,000, for $80,000.
c)Purchased equipment with a cost of $50,000 to replace equipment, book value $13,000, that was sold for $10,000.
d)Dividends declared and paid: Pembina $50,000; Scranton $40,000.
e)Consolidated net income: $234,000.
Required:
Prepare the consolidated statement of cash flows for the year ended December 31, 20X5, for Pembina and its subsidiary.

The Following Comparative Consolidated Trial Balances Apply to Pembina Company