1. Company S has been an 80%-owned subsidiary of Company P since January 1, 2018. The determination and distribution of excess schedule prepared at the time of purchase was as follows:

	Entity	80% Parent	20% NCI
Entity FV	$ 712,500	$ 570,000	$ 142,500
Book value:
Pain-in capital in excess of par	300,000
Retained earnings 1/1/20	300,000
Book value	600,000	480,000	120,000
Excess	$ 112,500	$ 90,000	$ 22,500
Equipment	$ 50,000	10 yr	5,000
Goodwill	62,500
Total	$ 112,500

On January 2, 2019, Company P issued $120,000 of 8% bonds at face value to help finance the purchase of 25% of the outstanding common stock of Alpha Company for $200,000. No excess resulted from this transaction. Alpha earned $100,000 net income during 2019 and paid $20,000 in dividends.

The only change in plant assets during 2019 was that Company S sold a machine for $10,000. The machine had a cost of $60,000 and accumulated depreciation of $40,000. Depreciation expense recorded during 2019 was as follows:

	Company P	Company S	Alpha Company
Buildings	$15,000	$ 8,000	$12,000
Machinery	35,000	20,000	4,000

The 2019 consolidated income was $180,000, of which the NCI was $10,000. Company P paid dividends of $12,000, and Company S paid dividends of $10,000.

Consolidated inventory was $287,000 in 2018 and $223,000 in 2019; consolidated current liabilities were $246,000 in 2018 and $216,700 in 2019. Cash increased by $203,700.

Required:

Using the indirect method and the information provided, prepare the 2019 consolidated statement of cash flows for Company P. and its subsidiary, Company S.