ONLY NEED WHAT'S IN RED, NOT SURE WHERE I WENT WRONG 
ONLY NEED WHAT'S IN RED, NOT SURE WHERE I WENT WRONG
Hat Company holds 75 percent of the common stock of Ties, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: 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 Ties Common stock Additional paid-in capital Retained earnings Total liabilities and equities 2017 $ (960,000) 622,000 112,000 0 52,000 (174,000) 31,000 $ (143,000) $ (322,000) (143,000) 72,000 $ (393, 000) $ 102,000 194,000 222,000 662,000 194,000 $ 1,374,000 $ (164,000) (422,000) (54,000) (142,000) (199,000) (393, 000) $(1,374,000 2018 $(1,090,000) 662,000 144,000 (42,000) 52,000 (274,000) 33,000 $ (241,000) $ (393, 000) (241,000) 122,000 $ (512,000) $ 204,000 162,000 384,000 746,000 167,000 $ 1,663,000 $ (134,000) (544,000) (73,000) (152,000) (248,000) (512,000) $(1,663,000) Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $27,000 per year. The parent sold a building with a cost of $104,000 but a $52,000 book value for cash on May 11. The subsidiary purchased equipment on July 23 for $253,000 in cash. Late in November, the parent issued stock for cash. . During the year, the subsidiary paid dividends of $56,000. 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: Consolidated net income $ 274,000 Adjustment from accrual to cash: Depreciation and amortization 144,000 Gain on sale of building (42,000) Decrease in accounts payable 32,000 Increase in inventory (162,000) Decrease in accounts receivable (30,000) $ 216,000 Net cash flow from operating activities Cash flows from investing activities: Sale of building Purchase of equipment $ 94,000 (253,000) (159,000) Net cash flow from investing activities Cash flows from financing activities: Dividends declared Issuance of bonds $ (136,000) 122,000 59,000 Issuance of common stock 45,000 Net cash flow from financing activities Net increase in cash during 2018 Cash, January 1, 2018 Cash, December 31, 2018 102,000 102,000 $ 204,000
