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Andies Co. held 80% of the common stock of Breaver Inc. and 40% of this subsidiary's...

Andies Co. held 80% of the common stock of Breaver Inc. and 40% of this subsidiary's convertible bonds. The following consolidated financial statements were for 2010 and 2011.

2010 2011
Revenues $1,064,000 $1,232,000
Cost of goods sold (714,000) (756,000)
Depreciation and amortization (126,000) (140,000)
Gain on sale of building 0 28,000
Interest expense (42,000) (42,000)
Non-controlling interest 12,600 15,400
Net income to controlling interest $169,400 $306,600
Retained earnings, Jan 1 $420,000 $519,400
Net income (from above) 169,400 306,600
Dividends paid (70,000) (140,000)
Retained earnings, Dec 31 $519,400 $686,000
Cash $112,000 $196,000
Accounts receivable 210,000 196,000
Inventory 280,000 476,000
Buildings and equipment (net) 896,000 966,000
Database 210,000 203,000
Total assets $1,708,000 $2,037,000
Accounts payable $196,000 $140,000
Bonds payable 560,000 720,000
Non-controlling interest 44,800 57,400
Common stock 140,000 168,000
Additional paid-in capital 247,800 265,600
Retained earnings, Dec 31 519,400 686,000
Total liabilities and stockholders' equity $1,708,000 $2,037,000

Additional information:

1. Bonds were issued during 2011 by the parent for cash.

2. Amortization of a database acquired in the original combination amounted to $7,000 per year.

3. A building with a cost of $84,000 but a $42,000 book value was sold by the parent for cash on May 11, 2011.

4. Equipment was purchased by the subsidiary on July 23, 2011, using cash.

5. Late in November 2011, the parent issued common stock for cash.

6. In 2011, the subsidiary paid dividends of $14,000.

Required:

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

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