Required:

Prepare a consolidated statement of cash flows for Primer Incorporated and its subsidiary for the year ended December $31,20$X$6,$

using the indirect method.

Note: Amounts to be deducted should be indicated with a minus sign.

Supplemental Schedule of Noncash Investing and Financing Activities:Following are the consolidated balance sheet accounts of Primer Incorporated and its subsidiary, Sore Corporation, as of December $31,$

$206$ and $205.$

Additional Information

On January $20,20$X$6,$ Primer issued $10,000$ shares of its common stock for land having a fair value of $$215,000.$

On February $5,20$X$6,$ Primer reissued all of its treasury stock for $$44,000.$

On May $15,20$X$6,$ Primer paid a $$62,000$ cash dividend on its common stock.

On August $8,206,$ Primer purchased equipment for $$129,000.$

On September $30,20$X$6,$ Primer sold equipment for $$42,000.$ The equipment cost $$64,000$ and had a carrying amount of $$36,000$

on the date of sale.

On December $15,206,$ Sore paid a cash dividend of $$54,000$ on its common stock.

Sore recognized goodwill impairment loss of $$3,000$ in $206.$

Deferred income taxes represent temporary differences between book and tax bases of accounts receivable, marketable equity

securities and plant and equipment.

Net income for $20$X$6$ was as follows:

Primer owns $70$ percent of its subsidiary, Sore. No change in the ownership interest in Sore occurred during $205$ and $206.$ No

intercompany transactions occurred other than the dividend paid to Primer Incorporated by its subsidiary.

Required:

Prepare a consolidated statement of cash flows for Primer Incorporated and its subsidiary for the year ended December $31,20$X$6,$

using the indirect method.

Note: Amounts to be deducted should be indicated with a minus sign.