A consolidated income statement for 2013 and comparative consolidated balance sheets for 2012 and 2013 for P Company and its 80% owned subsidiary follow: P COMPANY AND SUBSIDIARY Consolidated Income Statement For the Year Ended December 31, 2013 Sales ………………………………………………………………….$1,900,000 Cost of goods sold …………………………………………………….1,000,000 Gross margin …………………………………………………………….900,000 Expenses …………………………………………………………………300,000 Operating income before tax ……………………………………………600,000 Dividend income …………………………………………………………50,000 Income before tax ………………………………………………………550,000 Income taxes ……………………………………………………………220,000 Consolidated net income ……………………………………………….330,000 Less: Non controlling interest in consolidated net income ………………66,000 Controlling interest in consolidated net income ………………………$ 264,000 Other information: 1. Equipment depreciation was $95,000. 2. Equipment was purchased during the year for cash, $545,000. 3. Dividends paid during 2013: a. Declared and paid by S Company, $40,000. b. Declared and paid by P Company, $60,000. 4. The bonds payable were issued on December 30, 2013, for $240,000. 5. Common stock issued during 2013, 150,000 shares. Required: Prepare a consolidated statement of cash flows for the year ended December 31, 2013, using the indirect method. View Solution:
A consolidated income statement for 2013 and comparative consolidated balance