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3..Hills Inc. acquired subsidiary X for 550 ($,000) in 20X2 and also bought Property, plant and equipment for 350($,000).
| Hills Inc. Consolidated statement of comprehensive income for the period ended 20X2 Sales |
| | |
| Sales | 30650 |
| Cost of sales | -26000 |
| Taxes on income | 300 |
| gross Profit | 4650 |
| Depreciation | -450 |
| Administrative and selling expenses | -910 |
| Interest expense | -400 |
| Investment income | 500 |
| Foreign exchange loss | -40 |
| Profit before taxation | 3350 |
| Taxes on income | -300 |
| Profit | 3050 (a) |
| (a) The entity did not recognize any components of other comprehensive income in the period ended 20X2 Note: Figures are in ($,000) Additional Notes; 1.It was found out that Hills proceeds from sale of equipment was 20,000 and they also received a dividend of 200,000 and Interest of 200,000. 2.Hill Inc paid lease liabilities of 90,000 3. Had proceeds from Long-term borrowings of 250,000. 4. In May of 20x2 they paid dividend of 1200 Required: A. Prepare the Consolidated Cash Flow Statement for Hills Inc. using Indirect Method. |
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