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	$6,650,000	$6,400,000
Accumulated depreciation	(2,750,000)	(2,370,000)
Goodwill	543,000	604,000
Inventory	1,033,700	503,000
Accounts receivable	639,000	731,000
Cash	567,200	348,000
	$6,682,900	$6,216,000
Ordinary shares	$800,000	$800,000
Retained earnings	1,000,000	533,000
Non-controlling interest	531,900
Long-term liabilities	3,950,000	3,713,000
Current liabilities	401,000	1,170,000
	$6,682,900	$6,216,000
Revenues	$8,630,000
Cost of purchases and other expenses	8,226,000
Change in inventory	(530,700)
Depreciation	380,000
Goodwill impairment loss	61,000
	8,136,300
Profit	$ 493,700
Attributable to
Shareholders of Parent	$ 454,000
Non-controlling interest	39,700

Additional Information

• On December 31, Year 1, Parent owned 100% of Sub. On this date, the shareholders equity of Sub amounted to $1,133,000, and the parents undepleted acquisition differential of $604,000 was allocated entirely to the goodwill of Sub.
• On January 1, Year 2, Parent sold 30% of its shares of Sub for $642,000 cash and recorded an increase to retained earnings of $120,900 on the transaction. Parent uses the equity method to account for its investment.
• Parent paid $107,900 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.

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