Consolidated Statement of Cash Flows, Indirect Method A consolidated income statement for 2004 and comparative consolidated balance sheets for 2003 and 2004 for P Company and its 80% owned subsidiary follow: LO6 P COMPANY Consolidated Income Statement For the Year Ended December 31, 2004 Sales $1,900,000 Cost of Goods Sold 1,000,000 Gross Margin 900,000 Expenses 300,000 Operating Income Before 600,000 Tax Dividend Income 50,000 Income Before Tax 550,000 Income Taxes 220,000 Income After Taxes 330,000 Less: Noncontrolling Interest 66,000 Consolidated Net Income $ 264,000 P COMPANY Consolidated Balance Sheets December 31, 2003 and 2004 Assets 2004 2003 Cash $ 250,000 $ 300,000 Accounts Receivable 360,000 250,000 Inventories 210,000 190,000 Equipment (net) 950,000 500,000 Long-Term Investments 800,000 800,000 Goodwill 175,000 175,000 Total Assets $2,745,000 $2,215,000 Liabilities and Equity Accounts Payable $ 268,000 $ 500,000 Accrued Payable 260,000 200,000 Bonds Payable 200,000 —0—
Premium on Bonds Payable 40,000 —0—
Noncontrolling Interest 148,000 90,000 Common Stock, $1 par value 600,000 450,000 Other Contributed Capital 275,000 225,000 Retained Earnings 954,000 750,000 Total Equities $2,745,000 $2,215,000 Additional Information:
1. Equipment depreciation was $95,000.
2. Equipment was purchased during the year for cash, $545,000.
3. Dividends paid during 2004:

(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, 2004, for $240,000.
5. Common stock issued during 2004, 150,000 shares.
Required:
Prepare a consolidated statement of cash flows for the year ended December 31, 2004, using the indirect method.