Prepare consolidated statement of cash flows using the direct method or indirect methodCom...

Prepare consolidated statement of cash flows using the direct method or indirect method

Comparative consolidated financial statements for Pes Corporation and its 90 percent-owned subsidiary, Sun Corporation, at and for the years ended December 31 are as follows:

REQUIRED: Prepare a consolidated statement of cash flows for Pes Corporation and Subsidiary for the year ended December 31, 2011, using either the indirect method or the direct method. All changes in plant assets are due to asset acquisitions and depreciation. Sun’s net income and dividends for 2011 are $50,000 and $20,000, respectively.