Consolidated Statement of Cash Flows, Direct Method The consolidated income statement for the year ended December 31, 2005, and comparative balance sheets for 2004 and 2005 for Parks Company and its 90% owned subsidiary SCR, Inc. are as follows: LO6 PARKS COMPANY AND SUBSIDIARY Consolidated Income Statement For the Year Ended December 31, 2005 Sales $239,000 Cost of Goods Sold 104,000 Gross Margin 135,000 Depreciation Expense $27,000 Other Operating Expenses 72,000 99,000 Income from Operations 36,000 Investment Income 4,500 Combined Net Income 40,500 Noncontrolling Interest in Net Income 3,000 Consolidated Net Income $ 37,500 PARKS COMPANY AND SUBSIDIARY Consolidated Balance Sheets December 31, 2004 and 2005 2005 Cash $ 36,700 Receivables 55,000 Inventory 126,000 Property, Plant & Equipment (net of depreciation) 231,000 Long-Term Investment 39,000 Goodwill 60,000 Total Assets $547,700 Accounts Payable $ 67,500 Accrued Expenses 30,000 Bonds Payable, due July 1, 2013 100,000 Total Liabilities 197,500 Noncontrolling Interest 32,200 Common Stock 187,500 Retained Earnings 130,500 Total Stockholders’ Equity 318,000 $547,700 SCR Inc. declared and paid an $8,000 dividend during 2005.
Required:
Prepare a consolidated statement of cash flows using the direct method.
2004 $ 16,000 90,000 92,000 225,000 39,000 60,000 $522,000 $ 88,500 41,000 150,000 30,000 100,000 112,500 212,500