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Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements

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Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: 2017 (860.000) 602 000 92,000 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 earnings. 1/1 Net income 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 pald-in capital Retained earnings Total liabilities and equities 32.000 (134,000) 11,000 (123.000) (302.000) (123,000) 52.000 (373,000) 82,000 154,000 202.000 642.000 154,000 1.234.000 (142,000) (402,000) (34,000) (104.000) (179,000) (373.000) (1.234,000) 2018 (990.000) 642.000 104.000 (22,000) 32.000 (234,000) 13.000 $ (221.000) $ (373.000) (221,000) 102.000 $ (492.000) 154 000 142.000 344,000 696,000 147.000 $ 1.483 000 $ (104.000) (504,000) (43,000) (132,000) (208,000) (492.000) $ (1.483,000) $ $ Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $7,000 per year. The parent sold a building with a cost of $64,000 but a $32,000 book value for cash on May 11. The subsidiary purchased equipment on July 23 for $183,000 in cash. Late in November, the parent issued stock for cash. . During the year, the subsidiary paid dividends of $20,000. 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, 2018. (Use indirect method) (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, 2018 Cash from operating activities: Adiustment from accrual to cash: 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, 2018 Cash, December 31, 2018

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