The Following Information Was Derived from the 2017 Consolidated Financial

question 52

Essay

The following information was derived from the 2017 consolidated financial statements of X Inc., which owns 80% of Y Inc. as well as 40% of Z Inc.: $\begin{array}{|l|l|}\hline \text { Equity Earnings from Z Inc. } & \$ 120,000 \\\hline \text { Decrease in Accounts Payable } & \$ 5,000 \\\hline \text { Increase in Accounts Receivable } & \$ 10,000 \\\hline \text { Increase in Inventory } & \$ 20,000 \\\hline \text { Increase in Bonds Payable } & \$ 40,000 \\\hline \text { Depreciation } & \$ 20,000 \\\hline \text { Loss on sale of machinery } & \$ 10,000 \\\hline \text { Carrying value of machinery sold } & \$ 60,000 \\\hline \text { Diwidends received from Z Inc. } & \$ 10,000 \\\hline \text { Purchase of a building for cash } & \$ 400,000 \\\hline \text { Goodwill impairment loss } & \$ 5,000 \\\hline \text { Entity Net Inc ome allocated to non-controlling interes } & \$ 5,000 \\\hline \text { Consolidated net income allocated to Parent } & \$ 950,000 \\\hline \text { Diwidends paid by } X \text { Inc. } & \$ 40,000 \\\hline \text { Diwidends paid by } Y \text { Inc. } & \$ 12,000 \\\hline\end{array}$ The cash balance at the start of 2017 was $200,000.
Required:
Prepare the consolidated statement of cash flows for Lime Inc for the year ended December 31, 2017.

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Definitions:

Projected Cost

An estimate of the total expenses expected to be incurred for a particular project or activity in the future.

Revenue Conditions

Refers to the factors that impact the revenue generation capabilities or situations of a business.

Liquidity Ratio

Financial metrics used to determine a company’s ability to pay off its short-term debts obligations with its liquid assets.

Generate Cash

The processes and strategies employed by businesses to increase liquidity and ensure sufficient funds are available for operational needs and investments.