The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement for Year 2, of Parent Ltd. and its 70%-owned subsidiary, Sub, are shown below.

	Year 2	Year 1
Plant and equipment	$7,350,000	$7,100,000
Accumulated depreciation	(2,925,000)	(2,580,000)
Goodwill	553,500	625,000
Inventory	1,057,500	510,000
Accounts receivable	660,000	743,600
Cash	1,043,100	355,000
	$7,739,100	$6,753,600
Ordinary shares	$800,000	$800,000
Retained earnings	1,315,700	540,000
Non-controlling interest	541,000
Long-term liabilities	4,680,000	4,193,600
Current liabilities	402,400	1,220,000
	$7,739,100	$6,753,600
Revenues	$8,700,000
Cost of purchases and other expenses	8,024,400
Change in inventory	(547,500)
Depreciation	345,000
Goodwill impairment loss	71,500
	7,893,400
Profit	$ 806,600
Attributable to
Shareholders of Parent	$ 766,200
Non-controlling interest	40,400

Additional Information

• On December 31, Year 1, Parent owned 100% of Sub. On this date, the shareholders equity of Sub amounted to $1,140,000, and the parents undepleted acquisition differential of $625,000 was allocated entirely to the goodwill of Sub.
• On January 1, Year 2, Parent sold 30% of its shares of Sub for $649,000 cash and recorded an increase to retained earnings of $119,500 on the transaction. Parent uses the equity method to account for its investment.
• Parent paid $110,000 in dividends during Year 2.

Required:

Prepare, in good form, a consolidated cash flow statement for Year 2 in accordance with the requirements of IAS 7. (Negative amounts should be indicated by a minus sign.)

Parent Ltd.
Consolidated Cash Flow Statement
For the Year Ended December 31, Year 2
Operating cash flow:
Add (deduct):
Investing cash flow:
Financing cash flow:
Net increase/(decrease) in cash
Cash January 1
Cash December 31