Question

Here are the consolidated financial statements of Post Ranch Resort and its 70 percent owned subsidiary, Sandpearl, for the year ended December 31, 2020, plus supplementary information. Comparative balance sheets are provided for 2019 and 2020.
Consolidated Balance Sheets				Consolidated Income Statement
December 31	2020	2019		Sales and other income	$250,000,000
Cash	$150,000	$113,000		Cost of sales	-170,000,000
Receivables	325,000	310,000		Operating expenses	-79,800,000
Inventories	1,400,000	1,450,000		Consolidated net income	200,000
Equity method investments	200,000	192,000		Noncontrolling interest in net income	-90,000
Property, plant and equipment, net	5,000,000	4,700,000		Net income to controlling interest	$110,000
Goodwill	3,000,000	3,080,000
Total assets	$10,075,000	$9,845,000
Current liabilities	$450,000	$425,000
Long-term liabilities	8,200,000	8,120,000
Shareholders’ equity to Post Ranch	1,185,000	1,135,000
Noncontrolling interest in Sandpear	240,000	165,000
Total liabilities and equity	$10,075,000	$9,845,000
Supplementary information for 2020:
1. Sandpearl paid $50,000 in cash dividends. Post Ranch paid $60,000 in cash dividends.
2. Operating expenses include depreciation expense of $250,000 and goodwill impairment losses of $80,000.
3. Sales and other income includes $50,000 gain on sale of property, plant and equipment and $10,000 equity in net income from equity method investees. Cash dividends received from equity method investees were $2,000.
4. Accumulated depreciation balances on December 31, 2020 and 2019 were $1,200,000 and $1,100,000, respectively.
5. Property, plant and equipment of $1,000,000 was purchased for cash.
Required
Prepare Post Ranch’s consolidated statement of cash flows for 2020, in good form. Use the indirect approach to display cash from operating activities.
Use a negative sign with answers to indicate a decrease/reduction in cash.
Post Ranch Resort and Subsidiary Consolidated Statement of Cash Flows For the year 2020
Cash from operating activities
Net Income OR Acquisition of property, plant and equipment, OR consolidate net income, OR Gain on sale of property and plant and equipment, OR INcrease in long-term liabilities			?????
Add (subtract) items not affecting cash:
Depreciation expense		Answer
Goodwill impairment loss		Answer
Undistributed equity method income		Answer
Net Income OR Acquisition of property, plant and equipment, OR consolidate net income, OR Gain on sale of property and plant and equipment, OR INcrease in long-term liabilities		Answer	Answer
Changes in current assets and liabilities:
Receivables		Answer
Inventories		Answer
Current liabilities		Answer	Answer
Net cash from operating activities			Answer
Cash from investing activities
Net Income OR Acquisition of property, plant and equipment, OR consolidate net income, OR Gain on sale of property and plant and equipment, OR INcrease in long-term liabilities		Answer
Sale of property, plant and equipment		Answer
Net cash used for investing activities			Answer
Cash from financing activities
Net Income OR Acquisition of property, plant and equipment, OR consolidate net income, OR Gain on sale of property and plant and equipment, OR INcrease in long-term liabilities		Answer
Dividends paid to controlling shareholders		Answer
Dividends paid to noncontrolling shareholders		Answer
Net cash from financing activities			Answer
Net increase in cash			Answer
Plus cash balance, January 1			Answer
Cash balance, December 31

Answer 1

Post Ranch Resort and subsidiary
Consolidated statement of cash flow
for the year 2020
Cash flows from operating activites
Consolidated net Income				200000
Depreication expense				250000
Goodwill impairment losses				80000
Gain on sale of property, plant and equipment				-50000
Undistributed equity method income				-8000
Changes in operating assets and Liabilities
Increase in Accounts Receivable				-15000
Decrease in Inventory				50000
Increase in current liabilities				25000
Net Cash flows from Operating Activities					532000
Cash flows from investing activities
Purchase of property, plant and equipment				-1000000
Sale of property, plant and equipment				500000
Cash dividends received from Equity method investee
Net Cash flows from Investing activities					-500000
Cash flows from financing activities
Increase in long term liabilities				80000
Dividends paid to
	Post Ranch Resort (controlling)shareholders			-60000
	Sandpearl(Non controlling) shareholders			-15000
Net Cash flows from Financing activities					5000
Net Cash Flows					37000
Cash at the Beginning of year					113000
Cash at the end of year					150000