Parento Inc. owns 80% of Santana Corp. The consolidated financial statements of Parento follow: Accounts payable $961,400 $843,000 Accrued liabilities $55,400$31,200 Bonds payable 300,000 Bond premium 9,600 10,800 Common shares 180,000362,480180,000330,000 Noncontrolling interest 26,720$961,400 24,000 $843,000 PARENTO INC. CONSOLIDATED INCOME STATEMENT For the year ended December 31, Year 4 Sales $962,000 Cost of sales $535,000 Selling expense 144,600 Administrative expense 159,800 Interest expense 31,400 Income tax 37,000 907,800 Net income $54,200 Attributable to: Parento's shareholders $49,480 Noncontrolling interest 4,720 Parento Inc. purchased its 80% interest in Santana Corp. on January 1, Year 2, for $114,000 when Santana had net assets of $90,000. The acquisition differential was allocated $24,000 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 $26,000 for Year 4 and paid dividends of $10,000 Selling and adm Parento reported a Year 4 equity method income of $49,480 and paid dividends of $17,000. Required (a) Prepare a consolidated cash flow statement for Year 4. (b) Why are 100% of the dividends paid by Santana not shown as a cash outflow on the cash flow statement