7.

CONSOLIDATED STATEMENT OF CASHFLOWS

Comparative consolidated financial statements for Pesta Corporation and its 90 percent-
owned subsidiary, Sinar Corporation, at and for the year ended December 31 are as follows:
PESTA CORPORATION AND SUBSIDIARY COMPARATIVE CONSOLIDATED

FINANCIAL STATEMENTS
Long-term (15.5)
liabilities 65.5 (50.0)
0.0
Other paid-in 140. (121.5)
capital 0 (18.5)
(4.0)
Income & Retained Earnings Statements for the (1.0)
year Noncontrolli
ng interest 100.0
Sales
30.0
19.0 130.0
Cost of Sales Depreciation expense Other operating Total
expenses Equities 60.0
(40.0)
Noncontrolling interest share Controlling share of 0.0
(in Million)
income 85.0 190.0
Year 2015
90.0
Add: Beginning retained earnings 35.0
665.0
Less: Dividends 120. (9.5)
(340.0)
0
Ending Retained Earnings 20.0
(50.0)
10%
Balance Sheets at December 31 32.5
(140.0)
Cash (0.5)
(5.0)
Inventories Year
130.0
2015
190.0 -
2014 22.0
Patents 2014
(40.0) (11.0)
600.
0
280.0 65.0 0.0

Accounts payable (324.

5) 3.0
 Pesta e 5, od or the indirect method. All
Corpora r usin changes in plant assets due
tion and 3 g to assets acquisitions and
Subsidi 1 eithe depreciation. Sun’s net
ary for , r the income and dividends for
Required
the year 2 direc 2015 are Rp40,000,000 and
ended 0 t Rp25,000,000 respectively!
Prepare a consolidated Decemb 1 meth
statements of cash flows for
Direct Method

Pesta Corporation and Subsidiary

Consolidated Statements of Cash Flows for the year ended December 31, 2015

Cash Flows from Operating Activities

Cash received from customers

…

Cash paid to suppliers

Cash paid for operating expenses

…

Net cash flows from operating activities

Cash Flows from Investing Activities

Net cash flows from investing activities

Payment of cash dividends-noncontrolling

…

Payment of long-term liabilities

…
…

Net cashflow from financing activities

Cash on January 1

Cash on December 31
…

Reconciliation of net income to cash provided by operating activities

…

Controlling share of NI

Adjustments to reconcile net income to cash

provided by operating activities:

…

Noncontrolling interest share

Depreciation Expense
…

Patents amortization
…

Increase in accounts receivable

…

Increase in inventories
…

Increase in other current assets

…
…

Net cash flows from operating activities

…
Indirect Method P
a
Pesta Corporation and Subsidiary y
m
Consolidated Statements of Cash Flows for the year ended December 31, 2015 e
n
Cash Flows from operating Activities t
o
f
c
Controlling share of Net Income
a
s
h
Adjustments to reconcile net income net cash d
i
v
from operating activities: i
… d
e
Non controlling share of NI n
d
s
-
Depreciation
n
…
o
n
Increase in accounts receivable c
… o
n
Increase in inventories t
… r
o
Increase in other current assets ll
… i
n
Net cash flow from Operating Activities g
…

Cash Flows from Investing Activities

…
N
Purchase of Plant and Equipment e
t
c
Net cash flows from investing activities a
s
h
fl
Cash Flows from Financing Activities o
… w
s
Payment of cash dividends-controlling f
r
om financing activities

Decrease in cash for the year Cash on January 1

Cash on December 31