Reference no: EM133113266
Question - Panet Corporation is a public company, based in Markham, Toronto, producing plastic bag. They own 80% of Saffer Corporation. The consolidated financial statements of Panet follows:
Panet Corporation Consolidated Balance Sheet As at December 31, Year 4
|
Year 4
|
Year 3
|
|
Cash
|
$121,100
|
$49,800
|
|
Accounts Receivable
|
115,000
|
136,000
|
|
Inventiory
|
230,000
|
192,000
|
|
Land
|
86,000
|
114,000
|
|
Buildings and Equipment
|
598,000
|
500,000
|
|
Accumulated Depreciation
|
(205,500)
|
(168,000)
|
|
Databases
|
16,800
|
19,200
|
|
$961,400
|
$843,000
|
|
|
|
|
Accounts Payable
|
$55,400
|
$31,200
|
|
Accrued Liabilities
|
27,200
|
27,000
|
|
Bonds Payable
|
300,000
|
240,000
|
|
Bond Premium
|
9,600
|
10,800
|
|
Common shares
|
180,000
|
180,000
|
|
Retained Earnings
|
362,480
|
330,000
|
|
Non-controlling interest
|
26,720
|
24,000
|
|
$961,400
|
$843,000
|
Panet Corporation Consolidated Income Statement For the year ended December 31, Year 4
|
Sales
|
|
$962,000
|
|
|
|
|
Cost of Sales
|
$535,000
|
|
|
Selling Expenses
|
144,600
|
|
|
Administrative Expense
|
159,800
|
|
|
Interest Expense
|
31,400
|
|
|
Income Tax
|
37,000
|
|
|
|
907,800
|
|
Net Income
|
|
$54,200
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
Panet Shareholders
|
|
$49,480
|
|
Non-controlling interest
|
|
4,720
|
Panet Corporation purchased its 80% interest in Saffer Corporation on January 1, Year 2, for $114,000 when Saffer had net assets of $90,000. The acquisition differential was allocated $24,000 to databases (10-year life), with the balance allocated to equipment (20-year life). Panet issued $60,000 in bonds on December 31, Year 4. Saffer reported a net income of $26,000 for Year 4 and paid dividends of $10,000.
Selling and administrative expense includes the following:
Depreciation of buildings and equipment $37,500
Database amortization 2,400
Loss on land sale 2,500
Panet reported a Year 4 equity method income of $49,480 and paid dividends of $17,000.
Required - Prepare a consolidated cash flow statement for Year 4.