Mario Company is an 80% owned subsidiary of Lois Company. The interest in Mario is purchased on January 1, 2011, for $680,000 cash. The fair value of the NCI was $170,000. At that date, Mario has stockholders’ equity of $650,000. The excess price is attributed to equipment with a 5-year life undervalued by $25,000 and to goodwill.

The following comparative consolidated trial balances apply to Lois Company and its subsidiary, Mario:

The 2012 information shown on page 364 is available for the Lois and Mario companies.
a. Mario purchases equipment for $70,000.
b. Mario issues $350,000 of long-term bonds and later uses the proceeds to purchase a new building.
c. On January 1, 2012, Lois purchases 30% of the outstanding common stock of Charles Corporation for $230,000. This is an influential investment. Charles’s stockholders’ equity is $700,000 on the date of the purchase. Any excess cost is attributed to equipment with a 10-year life. Charles reports net income of $80,000 in 2012 and pays dividends of $25,000.
d. Controlling share of consolidated income for 2012 is $262,000; the non-controlling interest in consolidated net income is $15,000. Lois pays $100,000 in dividends in 2012; Mario pays $15,000 in dividends in 2012.
Required
Prepare the consolidated statement of cash flows for 2012 using the indirect method. Any supporting calculations (including a determination and distribution of excess schedule) should be in good form.

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December 31 2011 December 31 2012 16,000 120,000 200,000 3,005,000 (1,081,000) 19,500 160,000 300,000 3,425,000 (1,282,000) 244,500 125,000 (200,000) (450,000) (179,000) Property, Plant, and Equipment.. Goodwill 125,000 (117,000) (100,000) (167,000) Controlling Interest: Common Stock (par). . Additional Paid-In Capital in Excess of Par.. . . (1,000,000) (650,000) (351,000) 0 (1,000,000) (650,000) (513,000) 0