Modern Advanced Accounting in Canada Eight Edition Connect:

Parento Inc. owns 80% of Santana Corp. The consolidated financial statements of Parento follow:
PARENTO INC.
CONSOLIDATED BALANCE SHEET
At December 31, Year 4
	Year 4			Year 3
Cash	$	100,680		$	50,600
Accounts receivable		141,500			196,000
Inventory		320,000			195,000
Land		93,500			206,000
Buildings and equipment		746,000			600,000
Accumulated depreciation		(245,600)			(201,600)
Databases		17,600			21,600
	$	1,173,680		$	1,067,600
Accounts payable	$	197,000		$	159,750
Accrued liabilities		47,300			46,600
Bonds payable		315,000			250,000
Bond premium		10,080			11,250
Common shares		180,000			180,000
Retained earnings		394,500			396,000
Non-controlling interest		29,800			24,000
	$	1,173,680		$	1,067,600
PARENTO INC.
CONSOLIDATED INCOME STATEMENT
For the year ended December 31, Year 4
Sales			$ 963,000
Cost of sales	$	529,650
Selling expense		144,450
Administrative expense		174,000
Interest expense		45,000
Income tax		46,600	939,700
Net income			$ 23,300
Attributable to:
Parentos shareholders			$ 15,500
Non-controlling interest			7,800
Parento Inc. purchased its 80% interest in Santana Corp. on January 1, Year 2, for $130,000 when Santana had net assets of $90,000. The acquisition differential was allocated $40,000 to databases (10-year life), with the balance allocated to equipment (20-year life). Parento issued $65,000 in bonds on December 31, Year 4. Santana reported a net income of $43,000 for Year 4 and paid dividends of $10,000.
Selling and administrative expense includes the following:
Depreciation of buildings and equipment	$ 44,000
Database amortization	4,000
Loss on land sale	7,000
Parento reported a Year 4 equity method income of $15,500 and paid dividends of $17,000.
Required:
(a)	Prepare a consolidated cash flow statement for Year 4. (Amounts to be deducted and negative net cash amount should be indicated with minus sign.)
Parento Inc. Consolidated Cash Flow Statement For the Year Ended December 31, Year 4
Operating cash flow:
$
Add (deduct):
Investing cash flow:
Financing cash flow:
Net increase/(decrease) in cash during the year
Cash at the beginning of the year
Cash at the end of the year