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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
(in Million)
Year Year 2015-
2015 2014 2014
Income & Retained Earnings
Statements for the year
Sales 665.0 600.0 65.0
Cost of Sales (340.0) (324.5) (15.5)
Depreciation expense (50.0) (50.0) 0.0
Other operating expenses (140.0) (121.5) (18.5)
Noncontrolling interest share (5.0) (4.0) (1.0)
Controlling share of income 130.0 100.0 30.0
Add: Beginning retained
earnings 190.0 130.0 60.0
Less: Dividends (40.0) (40.0) 0.0
Ending Retained Earnings 280.0 190.0 90.0
Balance Sheets at December 31
Assets
Cash 65.5 75.0 (9.5)
Accounts receivable-net 85.0 80.0 5.0
Inventories 140.0 120.0 20.0
Othe current assets 100.0 81.0 19.0
Plant and equipment-net 674.0 600.0 74.0
Patents 19.0 19.5 (0.5)
Total Assets 1,083.5 975.5 108.0
Equities
Accounts payable 85.0 63.0 22.0
Dividends payable 21.0 17.0 4.0
Long-term liabilities 35.0 46.0 (11.0)
Capital Stock 500.0 500.0 0.0
Other paid-in capital 120.0 120.0 0.0
Retained earnings 280.0 190.0 90.0
Noncontrolling interest 10% 32.5 29.5 3.0
Total Equities 1,073.5 965.5 108.0

Required
Prepare a consolidated statements of cash flows for Pesta Corporation and Subsidiary for the year ended
December 31, 2015, using either the direct method or the indirect method. All changes in plant assets
due to assets acquisitions and depreciation. Sun’s net income and dividends for 2015 are Rp40,000,000
and Rp25,000,000 respectively!
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
Purchase of plant and equipment …
Net cash flows from investing activities …
Cash Flows from Financing Acttivities
Payment of cash dividends-controlling …
Payment of cash dividends-noncontrolling …
Payment of long-term liabilities …
Net cashflow from financing activities …
Decrease in cash for the year …
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 payable …
Increase in accounts receivable …
Increase in inventories …
Increase in other current assets …
Net cash flows from operating activities …

Indirect Method
Pesta Corporation and Subsidiary
Consolidated Statements of Cash Flows for the year ended December 31, 2015

Cash Flows from operating Activities


Controlling share of Net Income …
Adjustments to reconcile net income net cash
from operating activities:
Non controlling share of NI …
Depreciation …
Patents amortization …
Increase in accounts receivable …
Increase in inventories …
Increase in other current assets …
Increase in accounts payable … …
Net cash flow from Operating Activities …
Cash Flows from Investing Activities
Purchase of Plant and Equipment …
Net cash flows from investing activities …
Cash Flows from Financing Activities
Payment of cash dividends-controlling …
Payment of cash dividends-noncontrolling …
Payment of long-term liabilities …
Net cashflows from financing activities …
Decrease in cash for the year …
Cash on January 1 …
Cash on December 31 …