Comparative consolidated balance sheet data for BIG Co and its 65% owned subsidiary LITTLE Co are as follows:
Item 2020 2019
Cash 12,000 25,000
Notes receivable (net) 60,000 43,000
Supplies inventory 90,000 50,000
PPE (net) 100,000 110,000
Patent 90,000 105,000
Totals 352,000 352,000
Accounts payable 80,000 68,000
Notes payable LT 50,000 30,000
Non-controlling interests 44,000 40,000
Common stock 10 $ par 205,000 205,000
Retained earnings 18,000 (10,000)
Totals 352,000 352,000
Additional information:
a. The consolidated net income for 2020 is $50,000.
b. Little paid $10,000 in dividends during the year. Big paid $17,000 in dividends.
c. Little sold $16,000 of supplies to Big during the year.
d. There were no sales or purchases of long-term assets during the year.
Required:
a. Compute the consolidated cash flows from operating activities using the indirect method. (4 marks)
b. Compute the consolidated cash flows from investing activities. (2 marks)
c. Compute the consolidated cash flows from financing activities. (4 marks)