Bolero Company holds 80 Percent of th common stock of Rivera,Inc and 40 Percent of this subsidiary convertible bonds. The following consolidated financial statement is for 2014 and 2015.

 

Bolero Company and Consolidated Subsidiary Rivera

 

 

Â	2014	2015
Revenue	(900,000)	(1,030,000)
Cost of good sold	610,000	650,000
Depreciattion and amortization	100,000	120,000
Gain on sale of building	0	(30,000)
Interest expenses	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 earnimng, 1/1	(310,000)	(381,000)
Net income	(131,000)	(229,000)
dDivi9dend declare	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
Building and equipment(net)	650,000	710,000
Databases	170,000	155,000
Total assest	1,290,000	1,555,000
Accounts payable	(160,000)	(110,000)
Bonds payable	(410,000)	(520,000)
Noncontrolling interest in Rivera	(42,000)	(61,000)
Common stock	(110,000)	(140,000)
Additional paid-in capital	(187,000)	(224,000)
Retained earning	(381,000)	(500,000)
Total liabilities and equities	(1,290,000)	(1,555,000)

 

Additional Information for 2015

· The parent issues bonds during the year for cash

· Amortization of databases amounts to $15,000 per year

· The parents sold a bui9lding with a cost of $80,000 but a $40,000 book value for cash on May 11

· The subsidiary purchases equipment on July 23 for $205,000 in cash

· Late in November, the parent issues stock for cash

· During the year, the subsidiary paid dividend of $10,000. Both parent and subsidiary pay dividend in the same years as declare

 

Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2015. (Use indirect method)