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 $ $160,960$ $ $66,000$

Accounts receivable $130,500187,600$

Inventory $312,000210,000$

Land $88,500164,000$

Buildings and equipment $718,000620,000$

Accumulated depreciation $(245,620)(208,320)$

Databases $22,00023,500$

$ $1,186,340$ $ $1,062,780$

Accounts payable $ $202,200$ $ $190,680$

Accrued liabilities $33,20031,400$

Bonds payable $320,000260,000$

Bond premium $10,24011,700$

Common shares $180,000180,000$

Retained earnings $413,840365,000$

Non$-$controlling interest $26,86024,000$

$ $1,186,340$ $ $1,062,780$

PARENTO INC.

CONSOLIDATED INCOME STATEMENT

For the year ended December $31,$ Year $4$

Sales $ $1,192,000$

Cost of sales $ $655,600$

Selling expense $178,800$

Administrative expense $194,500$

Interest expense $45,500$

Income tax $46,9001,121,300$

Net income $ $70,700$

Attributable to:

Parento$$s shareholders $ $65,840$

Non$-$controlling interest $4,860$

Parento Inc. purchased its $80\%$ interest in Santana Corp. on January $1,$ Year $2,$ for $$105,000$ when Santana had net assets of $$90,000.$ The acquisition differential was allocated $$15,000$ to databases $(10-$year life$),$ with the balance allocated to equipment $(20-$year life$).$ Parento issued $$60,000$ in bonds on December $31,$ Year $4.$ Santana reported a net income of $$25,800$ for Year $4$ and paid dividends of $$10,000.$

Selling and administrative expense includes the following:

Depreciation of buildings and equipment $ $37,300$

Database amortization $1,500$

Loss on land sale $5,000$

Parento reported a Year $4$ equity method income of $$65,840$ and paid dividends of $$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.$)$