Create an Account

Already have account?

Forgot Your Password ?

Mycoursehelp

Home / Questions / Alford Company and its 80 percent owned subsidiary Knight have the following income statem...

Alford Company and its 80 percent owned subsidiary Knight have the following income statements for 2014 Additional Information for 2014 Intra-entity inventory transfers during the year amount

Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2014:

Additional Information for 2014

• Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.

• Unrealized inventory profits at January 1 were $6,000, but at December 31, they are $9,000.

• Annual excess amortization expense resulting from the acquisition is $11,000.

• Knight paid dividends totaling $20,000.

• The noncontrolling interest’s share of the subsidiary’s income is $9,800.

• During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively. Using either the direct or indirect method, compute net cash flows from operating activities during the period for the business combination.

Jul 21 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions

© 2009-2023 - myCourseHelp.com. All Rights Reserved. The certification names are the trademarks of their respective owners.