Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiary’s convertible bonds. The following consolidated financial statements are for 2020 and 2021 (credit balances indicated by parentheses):

Additional Information for 2021
∙ The parent issued bonds during the year for cash.
∙ Amortization of databases amounts to $15,000 per year.
∙ The parent sold a building with a cost of $80,000 but a $40,000 book value for cash on May 11.
∙ The subsidiary purchased equipment on July 23 for $205,000 in cash.
∙ Late in November, the parent issued stock for cash.
∙ During the year, the subsidiary paid dividends of $10,000. Both parent and subsidiary pay dividends in the same year as declared.

Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2021. Use the indirect method to compute cash flow from operating activities.

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Bolero Company and Consolidated Subsidlary Rivera 2020 2021 $ (900,000) $(1,030,000) 650,000 120,000 (30,000) 40,000 Revenues... Cost of goods sold. Depreciation and amortization. Gain on sale of building. Interest expense.. 610,000 100,000 -0- 40,000 Consolidated net income (150,000) 19,000 (250,000) 21,000 to noncontrolling interest $ (131,000) $ (310,000) (131,000) 60,000 $ (381,000) $ 90,000 $ 229,000) $ (381,000) (229,000) 110,000 to parent company.. Retained earnings, 1/1.. Net income... Dividends declared. $ 500,000) $ 180,000 Retained earnings, 12/31 Cash.... Accounts receivable. 170,000 150,000 Inventory.. Buildings and equipment (net) 210,000 360,000 710,000 155,000 650,000 Databases 170,000 Total assets $1,290,000 $ 1,555,000