The Following Information Was Derived from the 2020consolidated Financial Statements

question 57

Essay

The following information was derived from the 2020consolidated financial statements of X Inc., which owns 80% of Y Inc. as well as 40% of Z Inc.:
$\begin{array}{|l|r|}\hline \text { Equity Earnings from Z Inc. } & \$ 120,000 \\\hline \text { Decrease in Accounts Payable } & \$ 5,000 \\\hline \text { Increase in Accounts Receivable } & \$ 10,000 \\\hline \text { Increase in Inventory } & \$ 20,000 \\\hline \text { Increase in Bonds Payable } & \$ 40,000 \\\hline \text { Depreciation } & \$ 20,000 \\\hline \text { Loss on sale of machinery } & \$ 10,000 \\\hline \text { Carrying value of machinery sold } & \$ 60,000 \\\hline \text { Dividends received from Z Inc. } & \$ 10,000 \\\hline \text { Purchase of a building for cash } & \$ 400,000 \\\hline \text { Goodwill impairment loss } & \$ 5,000 \\\hline \text { Entity Net Income allocated to non-controlling interest } & \$ 5,000 \\\hline \text { Consolidated net income allocated to Parent } & \$ 950,000 \\\hline \text { Dividends paid by X Inc. } & \$ 40,000 \\\hline \text { Dividends paid by Y Inc. } & \$ 12,000\\\hline\end{array}$ The cash balance at the start of 2020 was $200,000.
Required:
Prepare the consolidated statement of cash flows for Lime Inc for the year ended December 31, 2020.
X Inc.
Consolidated Statement of Cash Flows

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Definitions:

Preexisting Belief

A belief or opinion held before being exposed to new information or evidence.

Cognitive Impairments

Refers to conditions that significantly restrict an individual's mental functioning, affecting memory, attention, and decision-making.

Lay Epistemology

The study of how ordinary people form beliefs, knowledge, and understanding about the world.

Information Quantity

The amount of data or details available in a message or communication, which can affect understanding, decision-making, and information processing efficiency.