| Here arethe consolidated financial statements of Post Ranch Resort and its70 percent owned subsidiary, Sandpearl, for the year ended December31, 2020, plus supplementary information. Comparative balancesheets are provided for 2019 and 2020. | |
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Consolidated Balance Sheets | | | | Consolidated Income Statement | |
| December 31 | 2020 | 2019 | | Sales and other income | $250,000,000 |
| Cash | $150,000 | $113,000 | | Cost of sales | -170,000,000 |
| Receivables | 325,000 | 310,000 | | Operating expenses | -79,800,000 |
| Inventories | 1,400,000 | 1,450,000 | | Consolidated net income | 200,000 |
| Equity method investments | 200,000 | 192,000 | | Noncontrolling interest in netincome | -90,000 |
| Property, plant and equipment,net | 5,000,000 | 4,700,000 | | Net income to controllinginterest | $110,000 |
| Goodwill | 3,000,000 | 3,080,000 | | | |
| Total assets | $10,075,000 | $9,845,000 | | | |
| Current liabilities | $450,000 | $425,000 | | | |
| Long-term liabilities | 8,200,000 | 8,120,000 | | | |
| Shareholders’ equity to PostRanch | 1,185,000 | 1,135,000 | | | |
| Noncontrolling interest inSandpear | 240,000 | 165,000 | | | |
| Total liabilities andequity | $10,075,000 | $9,845,000 | | | |
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Supplementary information for 2020: | | | | | |
1. Sandpearl paid $50,000 in cash dividends. Post Ranch paid$60,000 in cash dividends. | | | | | |
2. Operating expenses include depreciation expense of $250,000and goodwill impairment losses of $80,000. | | | | | |
| 3. Salesand other income includes $50,000 gain on sale of property, plantand equipment and $10,000 equity in net income from equity methodinvestees. Cash dividends received from equity method investeeswere $2,000. | |
4. Accumulated depreciation balances on December 31, 2020 and2019 were $1,200,000 and $1,100,000, respectively. | | | | | |
5. Property, plant and equipment of $1,000,000 was purchased forcash. | | | | | |
| Required | | | | | |
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| PreparePost Ranch’s consolidated statement of cash flows for 2020, in goodform. Use the indirect approach to display cash from operatingactivities. |
Use a negative sign with answers to indicate adecrease/reduction in cash. | | | | | |
Post Ranch Resort and Subsidiary
Consolidated Statement of Cash Flows
For the year 2020 | | |
Cash from operating activities | | | | | |
Net Income OR Acquisition of property, plant and equipment, ORconsolidate net income, OR Gain on sale of property and plant andequipment, OR INcrease in long-term liabilities | | | ????? | | |
Add (subtract) items not affecting cash: | | | | | |
Depreciation expense | | Answer | | | |
Goodwill impairment loss | | Answer | | | |
Undistributed equity method income | | Answer | | | |
Net Income OR Acquisition of property, plant and equipment, ORconsolidate net income, OR Gain on sale of property and plant andequipment, OR INcrease in long-term liabilities |
| | Answer | Answer | | |
Changes in current assets and liabilities: | | | | | |
| Receivables | | Answer | | | |
| Inventories | | Answer | | | |
| Current liabilities | | Answer | Answer | | |
Net cash from operating activities | | | Answer | | |
| | | | | |
Cash from investing activities | | | | | |
Net Income OR Acquisition of property, plant and equipment, ORconsolidate net income, OR Gain on sale of property and plant andequipment, OR INcrease in long-term liabilities |
| | Answer | | | |
Sale of property, plant and equipment | | Answer | | | |
Net cash used for investing activities | | | Answer | | |
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Cash from financing activities | | | | | |
Net Income OR Acquisition of property, plant and equipment, ORconsolidate net income, OR Gain on sale of property and plant andequipment, OR INcrease in long-term liabilities |
| | Answer | | | |
Dividends paid to controlling shareholders | | Answer | | | |
Dividends paid to noncontrolling shareholders | | Answer | | | |
Net cash from financing activities | | | Answer | | |
Net increase in cash | | | Answer | | |
Plus cash balance, January 1 | | | Answer | | |
Cash balance, December 31 |
