ACCT 3041 - Advanced Financial Accounting Group Project #2-20% Boehly Company held 80% of the common stock of Khelsea Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2020 and 2021. Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest Retained earnings, January 1 Net Income (from above) Dividends paid 2020 $ 1,064,000 (714,000) 126,000) 2021 $ 1,232,000 0 (42,000) (12,600) $ 169,400 $420,000 169,400 (756,000) (140,000) 28,000 (42,000) (15,400) $ 306,600 $519,400 306,600 (140,000) $ 686,000 (70,000) Retained earnings, December 31 $519,400 Cash $112,000 $ 196,000 Accounts receivable 210,000 Inventory 280,000 Buildings and equipment (net) 896,000 $ 1,708,000 210,000 $ (196,000) (560,000) (44,800) 196,000 476,000 966,000 203,000 $ 2,037,000 $ (140,000) (720,000) Database Total assets Accounts payable Bonds payable Non-controlling interest in Subsidiary Common stock Additional paid-in capital Retained earnings, December 31 (from above) Total liabilities and stockholders' equity Additional Information: (57,400) (140,000) (168,000) (247,800) (265,600) (519,400) (686,000) $ (1,708,000) $ (2,037,000) 1. Bonds were issued during 2021 by the parent for cash. 2. Amortization of a database acquired in the original combination amounted to $7,000 per year. 3. A building with a cost of $84,000 but a $42,000 book value was sold by the parent for cash on May 11, 2021. 4. Equipment was purchased by the subsidiary on July 23, 2021, using cash. 5. Late in November 2021, the parent issued common stock for cash. 6. During 2021, the subsidiary paid dividends of $14,000. Required: Prepare a consolidated statement of cash flows for the consolidated company for the year ending December 31, 2021.