2B On January 1, 2014, Company P acquired 80% of Company S for $570,000 when the book value of net assets was $600,000. This excess of implied value over book value was allocated to equipment $50,000 with a 10-year life and goodwill $62,500. On January 2, 2015, Company P issued $120,000 of 8% bonds at face value to help finance the purchase of 25% of the outstanding common stock of Alpha Company for $200,000. No excess resulted from this transaction. Alpha earned $100,000 net income during 2015 and paid $20,000 in dividends. The only change in plant assets during 2015 was that Company S sold a machine for $10,000. The machine had a cost of $60,000 and accumulated depreciation of $40,000. Depreciation expense recorded during 2015 was as follows: Buildings Machinery Company P Company S Alpha Company $8,000 20,000 $12,000 4,000 $15,000 35,000 The 2015 consolidated income was $180,000, of which the NCI was $10,000. Company P paid dividends of $12,000, and Company S paid dividends of $10,000. Consolidated inventory was $287,000 in 2014 and $223,000 in 2015; consolidated current liabilities were $246,000 in 2014 and $216,700 in 2015. Required: Using the indirect method and the information provided, prepare the 2015 consolidated statement of cash flows for Company P. and its subsidiary, Company S. [12 marks]