Bolero Company holds 75 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2020 and 2021 (credit balances indicated by parentheses): Bolero Company and Consolidated Subsidiary Rivera Revenues Cost of goods sold Depreciation and amortization Gain on sale of building 2020 $ (940,000) 618,000 108,000 2021 $ (1,070,000) 658,000 136,000 0 Interest expense 48,000 Consolidated net income (166,000) to noncontrolling interest 27,000 (38,000) 48,000 (266,000) 29,000 to parent company $ (139,000) $ (237,000) Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets $ 1.346.000 $ (318,000) $ (389,000) (139,000) (237,000) 68,000 118,000 $ (389,000) $ (508,000) $ 98,000 $ 196,000 186,000 158,000 218,000 376,000 658,000 734,000 186,000 163,000 $ 1.627.000 Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets Accounts payable Bonds payable Noncontrolling interest in Rivera Common stock Additional paid-in capital Retained earnings Total liabilities and equities 00,000 $ (389,000) $ (508,000) $ 98,000 $ 196,000 186,000 158,000 218,000 376,000 658,000 734,000 186,000 163,000 $ 1,346,000 $ 1,627,000 $ (160,000) (418,000) $ (126,000) (536,000) (50,000) (134,000) (69,000) (148,000) (195,000) (240,000) (389,000) $ (1,346,000) (508,000) $ (1,627,000) Additional Information for 2021 The parent issued bonds during the year for cash. Amortization of databases amounts to $23,000 per year. The parent sold a building with a cost of $96,000 but a $48,000 book value for cash on May 11. The subsidiary purchased equipment on July 23 for $237,000 in cash. Late in November, the parent issued stock for cash. Additional Information for 2021 The parent issued bonds during the year for cash. Amortization of databases amounts to $23,000 per year. The parent sold a building with a cost of $96,000 but a $48,000 book value for cash on May 11. The subsidiary purchased equipment on July 23 for $237,000 in cash. Late in November, the parent issued stock for cash. During the year, the subsidiary paid dividends of $40,000. 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, 2021. Use the indirect method to compute cash flow from operating activities. (Negative amounts and amounts to be deducted should be indicated by a minus sign.) BOLERO COMPANY AND CONSOLIDATED SUBSIDIARY RIVERA Consolidated Statement of Cash Flows Year Ending December 31, 2021 Cash from operating activities: Consolidated net income A I L BOLERO COMPANY AND CONSOLIDATED SUBSIDIARY RIVERA Consolidated Statement of Cash Flows Year Ending December 31, 2021 Cash from operating activities: Consolidated net income Adjustment from accrual to cash: Depreciation and amortization Gain on sale of building Decrease in accounts receivable Decrease in accounts payable Net cash flow from operating activities $ 0 Cash flows from investing activities: Net cash flow from investing activities 0 Net cash flow from operating activities Cash flows from investing activities: $ Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Cash, January 1, 2021 Cash, December 31, 2021 0 0 0 0 $ 0