Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2018:

                

Additional Information for 2018

∙ Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.
∙ Intra-entity gross profits in inventory 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 indirect method, compute net cash flows from operating activities during the period for the business combination.