A consolidated income statement for 2013 and comparative consolidated balance sheets for 2012 and 2013 for P Company and its 80% owned subsidiary follow:

P COMPANY AND SUBSIDIARY

consolidated income statement

For the Year Ended December 31, 2013

Sales ............................................................................$1,900,000

Cost of goods sold .............................................................1,000,000

Gross margin ......................................................................900,000

Expenses ...........................................................................300,000

Operating income before tax ...................................................600,000

Dividend income ..................................................................50,000

Income before tax ...............................................................550,000

Income taxes .....................................................................220,000

Consolidated net income .......................................................330,000

Less: Non controlling interest in consolidated net income ..................66,000

Controlling interest in consolidated net income ...........................$ 264,000

consolidated income statement for 2013 and comparative consolidated balance" class="fr-fic fr-dii">

consolidated income statement for 2013 and comparative consolidated balance" class="fr-fic fr-dii">

Other information:
1. Equipment depreciation was $95,000.
2. Equipment was purchased during the year for cash, $545,000.
3. Dividends paid during 2013:
a. Declared and paid by S Company, $40,000.
b. Declared and paid by P Company, $60,000.
4. The bonds payable were issued on December 30, 2013, for $240,000.
5. Common stock issued during 2013, 150,000 shares.
Required:
Prepare a consolidated statement of cash flows for the year ended December 31, 2013, using the indirect method.

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P COMPANY Consolidated Balance Sheets December 31, 2012 and 2013 Assets Cash Accounts receivable Inventories Equipment (net) 2013 2012 300,000 250,000 190,000 500,000 800,000 175,000 $250,000 360,000 210,000 950,000 800,000 175,000 ng-term investments Goodwill Total assets $2,745,000 $2,215.000 Liabiliies and Accounts payable Accrued payable Bonds payable Premium on bonds payable Noncontrolling interest Common stock, $1 par value Other contributed capital Retained earnings S 500,000 200,000 $ 268,000 260,000 200,000 40,000 148,000 600,000 275,000 954.000 $2,745,000 90,000 450,000 225,000 750,000 S2,215,000 Total equities