Learning Outcomes for this Module Reminder:
- Assess how the consolidation process differs when a subsidiary has preferred stock or pays stock dividends.
- Evaluate consolidation entries under a variety of ownership structures.
- Formulate journal entries for additional consolidation reporting issues.
In addition to the assignment in Connect, please answer the following questions and submit your answers in a Word document:
W ith regards to your assignment performed in Connect, and what you read and learned about in this Module, answer the following questions.
You should refer to the FASB Accounting Standards Codification (FASB ASC), specifically, when answering some of the questions below:
The consolidated cash flows from operations from Jones Corporation and its subsidiary Long Manufacturing for 20X2 decreased quite substantially from 20X1 despite the fact that consolidated net income increased slightly in 20X2.
- What factors included in the computation of consolidated net income may explain the difference between cash flows from operations and net income?
- How might a change in credit terms extended by Long Manufacturing explain a part of the difference?
- How would an inventory write-off affect cash flow from operations?
- How would a write-off of uncollectible accounts receivable affect cash flow from operations?
- How does the preparation of a statement of cash flows differ for a consolidated entity compared with that of a single corporate entity?
- Write a paper of 2-3 pages double-spaced in length, not counting the title and the reference page(s) and any Exhibit(s) or Appendices. Submissions in excess of 3 pages are acceptable.
- Use terms, evidence, and concepts from the module interactive lecture and readings, including professional business language.
- Cite at least 3 credible, academic or professional sources for this assignment. The CSU Global Library (Links to an external site.) is a great place to find resources plus the FASB Codification.
- Format your paper according to CSU Global Writing Center (Links to an external site.) .
· Start with the links under the Research Help and Writing Help tabs on the CSU Global Library’s (Links to an external site.) homepage if you need assistance with writing style.