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 $ $115,280$ $ $59,200$

Accounts receivable $148,700157,500$

Inventory $321,000231,000$

Land $123,500139,000$

Buildings and equipment $958,000880,000$

Accumulated depreciation $(334,680)(295,680)$

Databases $16,50020,400$

$ $1,348,300$ $ $1,191,420$

Accounts payable $ $172,800$ $ $93,870$

Accrued liabilities $43,90042,000$

Bonds payable $450,000390,000$

Bond premium $14,40017,550$

Common shares $180,000180,000$

Retained earnings $457,740444,000$

Non$-$controlling interest $29,46024,000$

$ $1,348,300$ $ $1,191,420$

PARENTO INC.

CONSOLIDATED INCOME STATEMENT

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

Sales $ $1,102,000$

Cost of sales $ $606,100$

Selling expense $165,300$

Administrative expense $206,500$

Interest expense $46,800$

Income tax $39,1001,063,800$

Net income $ $38,200$

Attributable to:

Parento$$s shareholders $ $30,740$

Non$-$controlling interest $7,460$

Parento Inc. purchased its $80\%$ interest in Santana Corp. on January $1,$ Year $2,$ for $$129,000$ when Santana had net assets of $$90,000.$ The acquisition differential was allocated $$39,000$ to databases $(10-$year life$),$ with the balance allocated to equipment $(20-$year life$).$ Parento issued $$60,000$ in bonds on December $31,$ Year $4.$ Santana reported a net income of $$41,200$ for Year $4$ and paid dividends of $$10,000.$

Selling and administrative expense includes the following:

Depreciation of buildings and equipment $ $39,000$

Database amortization $3,900$

Loss on land sale $6,500$

Parento reported a Year $4$ equity method income of $$30,740$ and paid dividends of $$17,000.$

Required:

$($a$)$ Prepare a consolidated cash flow statement for Year $4.$