Allen Co. held 80% of the common stock of Brewer Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2010 and 2011. Additional Information: 1. Bonds were issued during 2011 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, 2011. 4. Equipment was purchased by the subsidiary on July 23, 2011, using cash. 5. Late in November 2011, the parent issued common stock for cash. 6. During 2011, the subsidiary paid dividends of $14,000. REQUIRED: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2011. Use the direct method.

1,064.000 S 1,232,000 Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Non-controlling interest Net income to controlling interest (714,000) (126,000) (756,000) (140,000) 28,000 $ 169,400 S 306,600 $420,000 519.400 306,600 Retained earnings, January 1 Net income (from above) Dividends paid Retained earnings, December 31 169.400 70,000) (140,000) $ 519.400 686,000 Cash Accounts receivable Inventory Buildings and equipment (net) Database Total assets 12,000 196,000 196,000 476,000 966,000 203,000 1.708.000 $ 2,037,000 210,000 280,000 896,000 210,000 $ (196,000) S (140,000) Accounts payable Bonds payable Non-controlling interest in Brewer Inc. Common stock Additional paid-in capital Retained earnings, December 31 (from above) (560,000) 44,800) (140,000) (247,800) (519,400) (720,000) (57,400) (168,000) (265,600) (686,000) S (1.708.000) S (2,037,000) Total liabilities and stockholders' equity5 (1.708.000) 5 (2.037,000