Question: Problem 6 - 4 2 ( Algo ) ( LO 6 - 5 ) Bolero Company holds 7 5 percent of the common stock of

Problem 6-42(Algo)(LO 6-5) Bolero Company holds 75 percent of the common stock of Rivera, Incorporated, and 40 percent of this subsidiarys convertible bonds. The following consolidated financial statements are for 2023 and 2024(credit balances indicated by parentheses): Bolero Company and Consolidated Subsidiary RiveraAccounts20232024Revenues$ (890,000)$ (1,020,000)Cost of goods sold608,000648,000Depreciation and amortization98,000116,000Gain on sale of building0(28,000)Interest expense38,00038,000Consolidated net income(146,000)(246,000)to noncontrolling interest17,00019,000to parent company$ (129,000)$ (227,000)Retained earnings, 1/1$ (308,000)$ (379,000)Net income(129,000)(227,000)Dividends declared58,000108,000Retained earnings, 12/31$ (379,000)$ (498,000)Cash$ 88,000$ 166,000Accounts receivable166,000148,000Inventory208,000356,000Buildings and equipment (net)648,000714,000Databases166,000153,000Total assets$ 1,276,000$ 1,537,000Accounts payable$ (148,000)$ (116,000)Bonds payable(408,000)(516,000)Noncontrolling interest in Rivera(40,000)(49,000)Common stock(116,000)(138,000)Additional paid-in capital(185,000)(220,000)Retained earnings(379,000)(498,000)Total liabilities and equities$ (1,276,000)$ (1,537,000) Additional Information for 2024 The parent issued bonds during the year for cash. Amortization of databases amounts to $13,000 per year. The parent sold a building with a cost of $76,000 but a $38,000 book value for cash on May 11. The subsidiary purchased equipment on July 23 for $207,000 in cash. Late in November, the parent issued stock for cash. During the year, the subsidiary paid dividends of $40,000. Both parent and subsidiary pay dividends in the same year as declared. Required: Prepare a consolidated statement of cash flows for this business combination for the year ending December 31,2024. Use the indirect method to compute cash flow from operating activities.

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