Badco Inc. purchased a 90% interest in Lazytoo Company for $600,000 cash on January 1, 2011. Any excess of implied over book value was attributed to depreciable assets with a 15-year remaining life (straight-line depreciation). To help pay for the acquisition, Badco issued $300,000, 20-year, 12% bonds at par value. Lazytoo€™s balance sheet on the date of acquisition was as follows:

Consolidated net income for 2011 was $155,889. Badco declared and paid dividends of $10,000 and Lazytoo declared and paid dividends of $5,000. There were no purchases or sales of property, plant, and equipment during the year.
At the end of 2011, the following information was also available:

Required:
Prepare a consolidated statement of cash flows using the indirect method for Badco and its subsidiary for the year ended December 31,2011.

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Assets Liabilities and Equity Cash Inventory Fixed assets (net) 10,000 140,000 540,000 90,000 100,000 200,000 300,000 690,000 Accrued payables onds payable Common stock ($10 par) Retained earnings Total liabilities and equity Total assets 690,000 Badco Company 12/31/10 Consolidated 12/31/11 Debits Credits Debits $ 63,500 1,385,555 Credits $ 390,000 Cash Inventory Fixed Assets Accrued payables Bonds payable Noncontrig interest Common Stock, ($10 par) Additional paid-in-capital Retained eanings 454,000 190,000 750,000 111,000 600,000 73,055 200,000 550,000 369,000 $1 330,000 1330,000 $1903.055 1903,055 150,000 200,000 200,000 550,000 230,000 Total