Question: Following are the consolidated balance sheet
Following are the consolidated balance sheet accounts of Brimer Inc. and its subsidiary, Dore Corporation, as of December 31, 20X6 and 20X5.
Additional Information:
On January 20, 20X6, Brimer issued 10,000 shares of its common stock for land having a fair value of $215,000.
On February 5, 20X6, Brimer reissued all of its treasury stock for $44,000.
On May 15, 20X6, Brimer paid a $58,000 cash dividend on its common stock.
On August 8, 20X6, Brimer purchased equipment for $127,000.
On September 30, 20X6, Brimer sold equipment for $40,000. The equipment cost $62,000 and had a carrying amount of $34,000 on the date of sale.
On December 15, 20X6, Dore paid a cash dividend of $50,000 on its common stock.
A Dore recognized goodwill impairment loss of $3,000 in 20X6.
Deferred income taxes represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial reporting.
Net income for 20X6 was as follows:
Brimer owns 70 percent of its subsidiary, Dore. No change in the ownership interest in Dore occurred during 20X5 and 20X6. No intercompany transactions occurred other than the dividend paid to Brimer Inc. by its subsidiary.
Required:
Prepare a consolidated statement of cash flows for Brimer Inc. and its subsidiary for the year ended December 31, 20X6, using the indirect method.
Transcribed Image Text:
Net Increase 20X6 20X5 (Decrease) Assets $ 313,000 175,000 $ 195,000 175,000 Cash $118,000 Marketable Equity Securities, at cost Allowance to Reduce Marketable Equity Securities to Market (13,000) 418,000 595,000 385,000 755,000 (199,000) 57,000 $2,486,000 (24,000) 440,000 525,000 170,000 690,000 (145,000) 60,000 $2,086,000 11,000 (22,000) 70,000 215,000 65,000 (54,000) (3,000) $400,000 Accounts Receivable, net Inventories Land Plant & Equipment Accumulated Depreciation Goodwill, net Total Assets Liabilities & Stockholders' Equity Current Portion of Long-Term Note Accounts Payable and Accrued Liabilities Note Payable, Long-Term Deferred Income Taxes Minority Interest in Net Assets of Subsidiary Common Stock, par $10 Additional Paid-In Capital Retained Earnings Treasury Stock, at cost Total Liabilities & Stockholders' Equity $ 150,000 595,000 300,000 44,000 179,000 580,000 303,000 335,000 $ 150,000 474,000 450,000 32,000 161,000 480,000 180,000 195,000 (36,000) $ 121,000 (150,000) 12,000 18,000 100,000 123,000 140,000 36,000 $2,486,000 $2,086,000 $400,000 Consolidated net income $231,000 110,000 Dore Corporation
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