Badco Inc. purchased a 90% interest in Lazytoo Company for $617,900 cash on January 1, 2016. Any excess of implied over book value was attributed to depreciable assets with a 15-year remaining life (straight-line depreciation). To help pay for the acquisition, Badco issued $319,400, 20-year, 12% bonds at par value. Lazytoo's balance sheet on the date of acquisition was as follows: Assets Cash Inventory Fixed assets (net) $ 10,700 148,500 583,000 Liabilities and Equity Accrued payables $ 98,200 Bonds payable 106,400 Common stock ($10 par) 218,300 Retained earnings 319,300 Total liabilities and equity $742,200 Total assets $742,200 Consolidated net income for 2016 was $201,954. Badoo declared and paid dividends of $10,200 and Lazytoo dedared and paid dividends of $5,100. There were no purchases or sales of property, plant, and equipment during the year. At the end of 2016, the following information was also available: Badco Company 12/31/15 Debits Credits Cash $362,500 Inventory 179,300 Fixed Assets 715,800 Accrued payables 139,900 Bonds payable 205,800 Noncontrolling interest Common Stock, ($10 par) 218,300 Additional paid-in-capital 539,600 Retained earnings 154,000 Total $1,257,600 $1,257,600 Consolidated 12/31/16 Debits Credits $61,300 410,300 1,433,000 101,200 594,700 65,800 218,300 539,600 385,000 $1,904,500 $1,904,600 Prepare a consolidated statement of cash flows using the indirect method for Badco and its subsidiary for the year ended December 31, 2016. (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) Badco Inc. and its subsidiary Consolidated Statement of Cash Flows Adjustments to convert consolidated net income to net cash flow from operating activities Badco Inc. purchased a 90% interest in Lazytoo Company for $617,900 cash on January 1, 2016. Any excess of implied over book value was attributed to depreciable assets with a 15-year remaining life (straight-line depreciation). To help pay for the acquisition, Badco issued $319,400, 20-year, 12% bonds at par value. Lazytoo's balance sheet on the date of acquisition was as follows: Assets Cash Inventory Fixed assets (net) $ 10,700 148,500 583,000 Liabilities and Equity Accrued payables $ 98,200 Bonds payable 106,400 Common stock ($10 par) 218,300 Retained earnings 319,300 Total liabilities and equity $742,200 Total assets $742,200 Consolidated net income for 2016 was $201,954. Badoo declared and paid dividends of $10,200 and Lazytoo dedared and paid dividends of $5,100. There were no purchases or sales of property, plant, and equipment during the year. At the end of 2016, the following information was also available: Badco Company 12/31/15 Debits Credits Cash $362,500 Inventory 179,300 Fixed Assets 715,800 Accrued payables 139,900 Bonds payable 205,800 Noncontrolling interest Common Stock, ($10 par) 218,300 Additional paid-in-capital 539,600 Retained earnings 154,000 Total $1,257,600 $1,257,600 Consolidated 12/31/16 Debits Credits $61,300 410,300 1,433,000 101,200 594,700 65,800 218,300 539,600 385,000 $1,904,500 $1,904,600 Prepare a consolidated statement of cash flows using the indirect method for Badco and its subsidiary for the year ended December 31, 2016. (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) Badco Inc. and its subsidiary Consolidated Statement of Cash Flows Adjustments to convert consolidated net income to net cash flow from operating activities