Question: Alford Company and its 80 percent owned subsidiary Knight have the

Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2011:

Additional Information for 2011
• Intra-entity inventory transfers during the year amounted to $90,000 and were downstream from Alford to Knight.
• Unrealized inventory gains at January 1 were $6,000, but at December 31, they are $9,000.
• Annual excess amortization expense resulting from the acquisition is $11,000.
• Knight paid dividends totaling $20,000.
• The noncontrolling interest’s share of the subsidiary’s income is $9,800.
• During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.
Using either the direct or the indirect approach, determine the amount of cash generated from operations during the period by this businesscombination.

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