The comparative consolidated statement of financial position at December 31, Year 2, and the consolidated income statement for Year 2, of Parent Ltd. and its 7Q%.owned subsidiary are shown below.

Additional Information:

• On December 31, Year 1, Parent owned 100% of Sub. On this date, the shareholders' equity of Sub amounted to $1,135,000, and the parent's unamortized acquisition differential of $610,000 was allocated entirely to the goodwill of Sub.

• On January 1, Year 2, Parent sold 30% of its shares of Sub for $644,000 cash and recorded an increase to retained earnings of $12,500 on the transaction. Parent uses the equity method to account for its investment.

• Parent paid $108,500 in dividends during Year 2.

Required:

Prepare, in good form, a consolidated cash flow statement for Year 2 in accordance with the requirements of lAS 7.

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Year 1 Year 2 Plant and equipment Accumulated depreciation Goodwill Inventory Accounts receivable Cash $6,850,000 (2,800,000) $6,600,000 (2,430,000) 560,500 610,000 1,040,500 505,000 645,000 734,600 710,900 350,000 $7,006,900 $6,369,600 Year 2 Year 1 $ 800,000 1,091,000 $ 800,000 Ordinary shares Retained earnings Non-controlling interest Long-term liabilities 535,000 534,500 4,180,000 401,400 $7,006,900 3,884,600 1,150,000 $6,369,600 Current liabilities Revenues $8,650,000 Cost of purchases and other expenses Change in inventory Depreciation Goodwill impairment loss 8,182,100 (535,500) 370,000 49,500 8,066,100 $ 583,900 Profit Attributable to: Shareholders of Parent $ 544,000 Non-controlling interest 39,900