The Following Comparative Consolidated Trial Balances Apply to Pembina Company

question 43

Essay

The following comparative consolidated trial balances apply to Pembina Company and its subsidiary Scranton Company (80% interest) for the fiscal year ended 12/31/18:
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$\begin{array}{lrr}& 12 / 31 / 17 & 12 / 31 / 18 \\\text { Cash } & \$ 145,000 & \$ 419,000 \\\text { Trading Securities Portfolio (at market) } & 160,000 & 175,000 \\\text { Accounts Receivable } & 440,000 & 384,000 \\\text { Inventories } & 525,000 & 542,000 \\\text { Land } & 130,000 & 105,000 \\\text { Plant, Property, and Equipment } & 660,000 & 680,000 \\\text { Accumulated Depreciation } & (145,000) & (188,000) \\\text { Goodwill } & 60,000 & 60,000 \\\text { Current Liabilities } & (474,000) & (502,000) \\\text { Long-Term Notes Payable } & (450,000) & (450,000) \\\text { Deferred Taxes } & (35,000) & (33,000) \\\text { NCI } & (161,000) & (199,800) \\\text { Paid-In Capital } & (660,000) & (660,000) \\\text { Retaned Earnings } & \underline{(195,000)} & \underline{(332,200)} \\& \underline { \$ - - } & \underline { \$ - - } \end{array}$ The following events occurred during the year:
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a) No trading securities were sold nor were any investments added to the portfolio.
b) Sold land, book value $\$ 25,000$ , for $\$ 80,000$ .
c) Purchased equipment with a cost of $\$ 50,000$ to replace equipment, book value $\$ 13,000$ , that was sold for $\$ 10,000$ .
d) Dividends declared and paid: Pembina $\$ 50,000$ ; Scranton $\$ 40,000$ .
e) Consolidated net income: $\$ 234,000$ . Required:
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Prepare the consolidated statement of cash flows for the year ended December 31, 2018, for Pembina and its subsidiary.
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