Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2015. (Use indirect method) Problem 6-45 Bolero Company holds 80 percent of the common stock of Rivera, Inc.,and 40 percent of this subsidiary’s convertible bonds. The following consolidated finanial statements are for 2014 and 2015: Bolero Company and Condolidated Subsidiary Rivera 2014 2015 Revenues (900,000) (1,030,000) Cost of goods sold 610,000 650,000 Depreciation and amortization 100,000 120,000 Gain on sale of building – (30,000) interest expense 40,000 40,000 Consolidated net income (150,000) (250,000) to noncontrolling interest 19,000 21,000 to parent company (131,000) (229,000) Retained earinings, 1/1 (310,000) (381,000) Net income (131,000) (229,000) Dividends declared 60,000 110,000 Retained earnings, 12/31 (381,000) (500,000) Cash 90,000 180,000 Accounts receivable 170,000 150,000 Inventory 210,000 360,000 Buildings and equipment (net) 650,000 710,000 Databases 170,000 155,000 Total assets 1,290,000 1,555,000 Accounts Payable (160,000) (110,000) Bonds payable (410,000) (520,000) Non controlling interest in Rivera (42,000) (61,000) Common stock (110,000) (140,000) Additional paid in capital (187,000) (224,000) Retained earnings (381,000) (500,000) Total liabilities and equities (1,290,000) (1,555,000) Additional information for 2015 The parent issued bonds during the year for cash. Amortization of databases amounts to $15,000 per year. The parent sold a building with a cost of $80,000 but a $40,000 book value for cash on May 11. The subsidiary purchased equipment on Jul y 23 for $205,000 in cash Late in November, the parent issued stock for cash. During the year, the subsidiary paid dividends of $10,000. Bot parent and subsidiary pay dividends in the same year as declared. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2015. (Use indirect method)
