P4-17 Prepare consolidated statement of cash flows using the direct method or indires method Comparative consolidated financial statements for Pam Corporation and its 90 percent-owned subsidiar Sun Corporation, at and for the years ended December 31 are as follows: 20162015 Change $ 150 51 0 37 2 60 120 260 $ 180 PAM CORPORATION AND SUBSIDIARY COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS (IN THOUSANDS) Year 2016 Year 2015 Income and Retained Earnings Statements for the Year Sales Cost of sales $ 1,350 $1,200 Depreciation expense (700) (649) Other operating expenses (102) (102) Noncontrolling interest share (278) (241) Controlling share of income (10) (8) Add: Beginning retained earnings 260 200 Less: Dividends 380 Ending Retained Earnings (80) (80) $ 560 $ 380 Balance Sheets at December 31 Assets Cash Accounts receivable-net $ 130 170 Inventories 160 280 Other current assets 240 200 Plant and equipment-net 1,348 1,200 Patents 38 39 Total assets $ 2,147 $1,931 Equities Accounts payable $ 170 $ 126 Dividends payable 42 34 Long-term liabilities 70 92 Capital stock 1,000 1,000 Other paid-in capital to 240 240 Retained earnings Oto 560 380 Noncontrolling interest-10% 65 59 Total equities $ 2,147 $1,931 $ 111 $ (19) 10 40 162 148 (1) $ 216 $ 216 REQUIRED: Prepare a consolidated statement of cash flows for Pam Corporation and Subsidiary for the year ended December 31, 2016, using either the indirect method or the direct method. All changes in plant assets are due to asset acquisitions with cash and depreciation. Sun's net income and dividends for 2016 are $100,000 and $40,000, respectively