Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2021:

Additional Information for 2021
∙ 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.

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Alford Knight $(500,000) 300,000 $(230,000) 140,000 Revenues. Cost of goods sold. Depreciation and amortization. Other expenses.. Gain on sale of equipment Equity in earnings of Knight. 40,000 10,000 20,000 20,000 -0- (30,000) (36,200) $206.200) -0- Net income. .. $ (60,000)