A consolidated income statement for 2011 and comparative consolidated balance sheets for 2010 and 2011 for P Company and its 80% owned subsidiary follow:

P COMPANY AND SUBSIDIARY

consolidated income statement

for the Year Ended December 31, 2011

Sales...............$1,900,000

Cost of goods sold.........1,000,000

Gross margin...........900,000

Expenses............300,000

Operating income before tax.....600,000

Dividend income..........50,000

Income before tax........550,000

Income taxes..........220,000

Consolidated net income...........330,000

Less: Noncontrolling interest in consolidated net income.66,000

Controlling interest in consolidated net income......$ 264,000

consolidated income statement for 2011 and comparative consolidated balance">

Other information:
1. Equipment depreciation was $95,000.
2. Equipment was purchased during the year for cash, $545,000.
3. Dividends paid during 2011:
a. Declared and paid by S Company, $40,000.
b. Declared and paid by P Company, $60,000.
4. The bonds payable were issued on December 30, 2011, for $240,000.
5. Common stock issued during 2011, 150,000 shares.

Required:
Prepare a consolidated statement of cash flows for the year ended December 31, 2011, using the indirectmethod.

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P COMPANY Consolidated Balance Sheets December 31, 201O and 2011 Assets Cash Accounts receivable Inventories Equipment (net) Long-term investments Goodwill1 2011 250,000 360,000 210,000 950,000 800,000 175.000 745.000 $2 215.000 2010 300,000 250,000 190,000 500,000 800,000 175,000 Total assets P COMPANY Consolidated Balance Sheets December 31, 2010 and 2011 Liahilities and Equity 2011 2010 268,000 500,000 260,000 200,000 Accounts payable Accrued payable Bonds payable Premium on bonds payable Noncontrolling interest Common stock, $1 par value Other contributed capital Retained earnings 200,000 40,000 148,000 600,000 275,000 954,000 $2,745,000 90,000 450,000 225,000 750,000 $2,215,000 Total equities