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 2012 and 2013:
Rodriguez Company and Consolidated Subsidiary Molina

Rodriguez Company and Consolidated Subsidiary Molina

Additional Information for 2013
€¢ 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, 2013. Either the direct or the indirect method may be used.

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2013 $ (850,000) 600,000 90,000 (980,000) Revenues Cost of goods sold Depreciation and amortization. 100,000 (20,000) 30,000 (230,000) 11,000 Interest expense Consolidated net income 30,000 (130,000) 9,000 to noncontrolling interest to parent company Retained earnings, 1/1. Net income Dividends paid. (121,000)(219,000 $ (300,000) (371,000) (219,000) 100,000 (121,000) 50,000 Retained earnings, 12/31 $ (371,000 (490,000) $ 80,000 150,000 140,000 340,000 690,000 145,000 1,220,000 1,465,000 Accounts receivable Inventory Buildings and equipment (net) Databases 150,000 200,000 640,000 150,000 Total assets Accounts payable Bonds payable. Noncontrolling interest in Molina. Common stock Additional paid-in capital. Retained earnings $ (140,000) (100,000) (500,000) (41,000) 130,000) (204,000) (490,000) (400,000) (32,000) (100,000) (177,000) (371,000) Total liabilities and equities. 220,000) $(1.465,000