Using the data presented in E10-5, prepare a statement of cash flows for Consolidated Enterprises Inc. using the direct method of computing cash flows from operating activities.
In E10-5
Decrease in accounts receivable ....... $ 23,000
Increase in accounts payable.......... 5,000
Increase in inventory............. 15,000
Increase in bonds payable........... 120,000
Equipment purchased............ 380,000
Common stock repurchased......... 35,000
Depreciation reported for current period..... 73,000
Gain recorded on sale of equipment...... 8,000
Book value of equipment sold........ 37,000
Goodwill impairment loss.......... 3,000
Sales .................. 900,000
Cost of goods sold ............ 368,000
Dividends paid by parent.......... 60,000
Dividends paid by subsidiary........ 30,000
Consolidated net income for the year..... 464,000
Income assigned to the noncontrolling interest.. 14,000