On June 30, 2021, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company’s outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Accounts receivable . . . . . . . . . . . . . . . . . . .   127,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   65,000
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . .300,000
Accounts payable . . . . . . . . . . . . . . . . . . . . .   (35,000)

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows:

Equipment (3-year remaining life) . . . . . . . . . . $ 75,000

Database (10-year remaining life) . . . . . . . . . .  175,000

At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available:

Additional Information for 2021
∙ On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.
∙ During the year, Plaster issued $800,000 in long-term debt at par.
∙ Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.

Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.

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Plaster, Inc. December 31, Consolidated December 31, 2020 2021 $ 43,000 362,000 $ 242,850 Cash Accounts receivable (net) 485,400 Inventory. 415,000 720,000 Land. 300,000 365,000 Buildings (net) Equipment (net). Database 245,000 370,000 1,800,000 2,037,500 -0- 166,250 Total assets $3,165,000 $4,387,000 Accounts payable . Long-term liabilities. $ 80,000 $ 107,000 1,200,000 400,000 Common stock ... 1,800,000 1,800,000 Noncontrolling interest. Retained earnings.... -0- 255,500 885,000 $3,165,000 1,024,500 Total liabilities and equities.. $4,387,000 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2021 Revenues $1,217,500 Cost of goods sold Depreciation .. Database amortization.. Interest and other expenses. $737,500 187,500 8,750 9,750 943,500 Consolidated net income $ 274,000