Problem 1 Consolidated Statement of Cash Flow Sub Company is an 80 %-owned subsidiary of Parent Company. The interest in Sub Company was purchased on January 1, 2010 for $3 10.000 cash, At that date, Sub had stockholders 'equity of $ 325000. The excess price was attributed to equipment with S-year life undervalued by S 12,500 and to goodwill The following are comparative consolidated trial balances 2010 2011 17.000 27,750 Cash 60,000 80.000 Inventory 100,000 150,000 Accounts receivable 1,500,000 1675,000 PP&E (540,000) Accumulated Depreciation (640,000) 122.250 Investment in Charley Co. (30 % ) 36,000 36,000 Goodwill (58,500) (104,000) Accounts Payable (50,000) Bonds Payable (200,000) (69,000) (75,500) Noncontrolling interest Controlling interest: (500,000) (500,000) Common stock (325,000) Paid-in Capital (325,000) (170,500) (246,500) Retained Earnings Cash do The following additional information is available: Sub purchases equipment for $ 25,000. Sub issued $150,000 of long-term bonds and later used to proceeds to purchase a new building. On January 1, 2011, Parent purchased 30 % of the outstanding stock of Charley Co. for $115,000. This is an influential investment. Charley's equity was $350,000 on the date of purchase. Any excess cost is attributed to fixed assets with a 10-year life. Charley reported net income of $40,000 for 2011 and paid dividends of $12,500. Controlling share of consolidated net income for 2011 was $126,000; the noncontrolling interest in consolidated net income was $8,000. Parent paid dividends of $50,000; Sub paid dividends of $7,500 in 2011 Prepare the consolidated statement of cash flows for 2011 using the indirect method for operating cash flows. A schedule is attached. You may ignore any schedule of significant non-cash transactions. Consolidated Statement of Cash Flows Parent and Sub Company For Your Ended 2011 Cash flows from operating activities: Consolidated net income Adjustments to reconcile net income to net cash: Cash flows from investing activities: trumen Cash flows from financing activities: Net change in cash beginning of year Cash at Cash at end of year