Rogers Company Consolidated Statement of Cash Flows

44. Rogers Company holds 80 percent of the common stock of Andrews, Inc., and 40 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2004 and 2005:

Rogers Company and Consolidated Subsidiary

2004 2005
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000 880,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . (510,000) (540,000)
Depreciation and amortization . . . . . . . . . . . . . . . . (90,000) (100,000)
Gain on sale of building . . . . . . . . . . . . . . . . . . . . . -0- 20,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,000) (30,000)
Noncontrolling interest . . . . . . . . . . . . . . . . . . . . . (9,000) (11,000)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 121,000 $ 219,000
Retained earnings, 1/1 . . . . . . . . . . . . . . . . . . . . . . $ 300,000 $ 371,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,000 219,000
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50,000) (100,000)
Retained earnings, 12/31 . . . . . . . . . . . . . . . . . . . . $ 371,000 $ 490,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,000 $ 140,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . 150,000 140,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 340,000
Buildings and equipment (net) . . . . . . . . . . . . . . . . 640,000 690,000
Databases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 145,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,220,000 $1,455,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . $ 140,000 $ 100,000
Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 500,000
Noncontrolling interest in Andrews . . . . . . . . . . . . 32,000 41,000
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 120,000
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . 177,000 204,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 371,000 490,000
Total liabilities and equities . . . . . . . . . . . . . . . . . . $1,220,000 $1,455,000

Additional Information
? Bonds were issued during 2005 by the parent for cash.
? Amortization of databases amounts to $5,000 per year.
? A building with a cost of $60,000 but a $30,000 book value was sold by the parent for cash on May 11, 2005.
? Equipment was purchased by the subsidiary on July 23, 2005, using cash.
? Late in November of 2005, the parent issued stock for cash.
? During 2005, the subsidiary paid dividends of $10,000.

Prepare a consolidated statement of cash flows for this business combination for the year ending December 31, 2005. Either the direct or the indirect approach may be used.