Additional Information for 2015

The parent issued bonds during the year for cash.

Amortization of databases amounts to $20,000 per year.

The parent sold a building with a cost of $90,000 but a $45,000 book value for cash on May 11

The subsidiary purchased equipment on July 23 for $235,000 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, 2015. (Use indirect method)

Bolero Company holds 50 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2014 and 2015: Belem Cmnpany and Consolidated Stdssidiary Riven] Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained eamings, 11'1 Net income Dividends declared Retained eamings, 121'31 Cash Accounts receivable Inventory Buildings and equipment {net} Databases Total assets Accounts payable Bonds payable Noncontrolling interest in Rivera Common stock Additional paidin capital Retained eamings Total liabilities and equities 2014 5 {525,000} 515,000 105,000 0 45,000 {150,000} 24,000 5 {155,000} 5 {515,000} {155,000} 55,000 5 {555,000} 15- 05,000 150,000 215,000 055,000 100,000 $1,325,000 5 {150,000} {415,000} {42,000} {115,000} {152,000} {555,000} 5{1,525,000} 2015 5{1,055__000} 555,000 150,000 {55,000} 45,000 {250,000} 25,000 5 {254,000} 115,000 5 {505,000} 15- 100,000 155,000 3?0,000 190,000 150,000 $1,505,000 5 {115,000} {550,000} {55,000} {145,000} {254,000} {505,000} 5{1,555_.000} Cash from operating activities: Consoi'rclated net income Adjustment from accmai to cash: Depreciation and amortization Gain on sale of huiiding Decrease in accounts receivahie Increase in inventory Decrease in accounts pavahie Net cash ow from operating activities Cash ows from investing activities: Saie of huiiding Purchase of equipment Net cash fiow from investing activities Cash ows from nancing activities: Dividends deciared Issuance of bonds I Issuance of common stock = Net cash ow from nancing activities Net increase in cash during 2&15 Cash, January 1, 2015 Cash, December 3.1, 2:115 _