Consolidated Cash from Operations

Consider the following data reported in the accounts of a parent company and its $80-$percent$-$owned subsidiary:

Parent Subsidiary

Net income $$1,000,000(1)$ $$240,000$

Depreciation expense $175,00038,000$

Amortization expense $50,000--$

Dividends paid in cash $250,00075,000$

Income from equity method investments $60,000--$

Cash dividends received from equity investments $35,000--$

Items appearing in eliminating entries:

Revaluation write$-$offs:

Depreciation expense $.$ $$3,000$

Amortization expense $15,000$

Goodwill impairment loss $40,000$

$(1)$ Parent$$s separate income only; does not include equity in net income of subsidiary.

Required

a$.$ Calculate consolidated net income.

b$.$ Prepare the cash from operating activities section of the consolidated statement of cash flows, starting with consolidated net income, using the indirect method. Assume no adjustment is required for changes in consolidated current asset and current liability accounts.

Use a negative sign with answers to indicate a decrease$/$reduction cash.

Consolidated Statement of Cash Flows

Cash from operating activities section

Consolidated net income

Consolidated depreciation expense

Consolidated amortization expense

Goodwill impairment loss

Cash from operating activities