Discuss How the Following Items Affecting Shareholder Equity Are Disclosed

question 10

Essay

Discuss how the following items affecting shareholder equity are disclosed in a consolidated statement of cash flows:
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1) The acquisition of controlling interest by issuing shares of stock
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2) The purchase of additional subsidiary shares from the non-controlling interest
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3) Subsidiary dividends

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Definitions:

Inventories

Quantities of goods and materials that a business holds for the purpose of sale or production.

Quick Ratio

A financial metric indicating a company's ability to meet short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A financial metric used to measure a company's ability to pay its short-term liabilities with its short-term assets.

Debt Ratio

A financial ratio that compares the amount of debt a company has to its total assets.