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)

Also read:

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