Example of Consolidated Cash Flow Statement to be worked on BBC Session presented below are the consolidated working paper balances of Pineda Corporation and its subsidiary Swamy Corporation as of December 2019 and 2020: 7. Deferred income taxes represent timing differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial reporting. 8. Net income for 2020 was as follows: Controlling interest in consolidated income $ 201,000 Swamy Corporation 110,000 9. Pineda Incorporated owns 70% Swamy Corporation. There was no change in ownership interest in Swamy during 2019 and 2020. There were no intercompany transactions other than the dividend paid to Pineda by its subsidiary. Assets 2020 2019 Net Change Incr. (Decr.) $ 118,000 $ 313,000 175,000 (13,000) $ 195,000 175,000 (24,000) 11,000 Required: Prepare the statement of cash flows for the Pineda Group using the indirect method. Cash Marketable equity securities (at cost) Allowance to reduce marketable equity securities to market Accounts receivable (net) Inventories Land Plant and equipment Accumulated depreciated Goodwill Total Assets 418,000 595,000 385,000 755,000 (199,000) 60,000 $2,489,000 440,000 525,000 170,000 690,000 (145,000) 60,000 $2,086,000 (22,000) 70,000 215,000 65,000 (54,000) 0 $403,000 $150,000 595,000 300,000 44,000 179,000 $150,000 474,000 450,000 32,000 161,000 $ 121,000 (150,000) 12,000 18,000 Liabilities and Stockholder's Equity Current portion of long-term Accounts payable and accrued liabilities Note payable, long term Deferred income taxes Non-controlling interest in net assets of subsidiary Common stock Additional paid-in capital Retained earnings Treasury stock (at cost) Total liabilities and stockholders' equity 580,000 303,000 338,000 0 $2,489,000 480,000 180,000 195,000 (36,000) $2,086,000 100,000 123,000 143,000 36,000 $403,000 Additional information: 1. On January 20, 2020, Pineda Incorporated issued 10,000 shared of its common stock for land having a fair value of $215,000. 2. On February 5, 2020, Pineda reissued all of its treasury stock for $44,000. 3. On May 15, 2020, Pineda repaid a cash dividend of $58,000 on its common stock. 4. On August 8, 2020, equipment was purchased for$127,000 5. On September 30, 2020, equipment was sold for $40,000. The equipment cost $62,000 and had a book value on that date of sale. 6. On December 15, 2020, Swamy Corporation paid dividend of $50,000 on its common stock