Rodriguez Company holds 80 percent of the common stock of Molina, Inc., and 30 percent of this subsidiary’s convertible bonds. The following consolidated financial statements are for 2010 and 2011:

Additional Information for 2011

• The parent issued bonds during the year for cash.
• Amortization of databases amounts to \($5,000\) per year.
• The parent sold a building with a cost of \($60,000\) but a \($30,000\) book value for cash on May 11.
• The subsidiary purchased equipment on July 23 using cash.
• Late in November, the parent issued stock for cash.
• During the year, the subsidiary paid dividends of \($10,000\).
Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2011. Either the direct or the indirect approach may be used.

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Rodriguez Company and Consolidated Subsidiary Molina Revenues Cost of goods sold Depreciation and amortization Gain on sale of building. Interest expense. 2010 2011 $ (850,000) $ (980,000) 600,000 640,000 90,000 100,000 -0- (20,000) 30,000 30,000 Consolidated net income to noncontrolling interest to parent company (130,000) 9,000 $ (121,000) (230,000) 11,000 $ (219,000)