Ch. 11 Assignment
Chapter 1 Notes Chapter 2 Notes Chapter 3 Notes Chapter 4 Notes Chapter 5 Notes Chapter 6 Notes Chapter 7 Notes Chapter 8 Notes Chapter 9 Notes Chapter 11 Notes Ch. 11 Assignment Chapter 13 Notes Problem Answers Case Solutions

The assignment for chapter 11 is the Amerbran Case. This case is difficult and there are a few subjects that have not been covered in the notes so I will try to give you suggestions to help in calculating the statement. 

The miscellaneous account will have ($6,825) and can be shown at the bottom of the statement. 

Deferred taxes are considered an operating adjustment (the changes in deferred taxes is in the long term liabilities). 

Income from subsidiary is also an operating adjustment, it represents a non cash increase in net income due to our share of the subs earnings. Therefore you must adjust the operating section by the $59,610. You decide + or -. 

Increase in short debt is classified as financing.

The 100% stock dividend is a non-event for the cash flow statement. 

You may show the components of the acquisition separately. 

Hopefully these suggestions will help you solve the case. If you get stuck, write me for further hints.