Comparative consolidated financial statements for Pop Corporatio

Comparative consolidated financial statements for Pop Corporation and its subsidiary, Sat Corporation, at and for the years ended December 31, 2012 and 2011 follow (in thousands).

Pop Corporation and Subsidiary Comparative Consolidated Financial Statements at and for the Years Ended December 31, 201

REQUIRED: Prepare a consolidated statement of cash flows for the year ended December 31, 2012. The changes in equipment are due to a $100,000 equipment acquisition, current depreciation, and the sale of one-ninth of the fair value/book value differential allocated to equipment ($10,000) and related accumulated depreciation ($2,000). This reduction in the unamortized fair value/book value differential results from selling a 10 percent interest in Sat for $72,700 and thereby reducing its interest from 90 percent to 80 percent. Sat's net income and dividends for 2012 were $110,000 and $50,000, respectively. Use the indirectmethod.