Reference no: EM133113266

Question - Panet Corporation is a public company, based in Markham, Toronto, producing plastic bag. They own 80% of Saffer Corporation. The consolidated financial statements of Panet follows:

Panet Corporation Consolidated Balance Sheet As at December 31, Year 4

	Year 4	Year 3
Cash	$121,100	$49,800
Accounts Receivable	115,000	136,000
Inventiory	230,000	192,000
Land	86,000	114,000
Buildings and Equipment	598,000	500,000
Accumulated Depreciation	(205,500)	(168,000)
Databases	16,800	19,200
	$961,400	$843,000
Accounts Payable	$55,400	$31,200
Accrued Liabilities	27,200	27,000
Bonds Payable	300,000	240,000
Bond Premium	9,600	10,800
Common shares	180,000	180,000
Retained Earnings	362,480	330,000
Non-controlling interest	26,720	24,000
	$961,400	$843,000

Panet Corporation Consolidated Income Statement For the year ended December 31, Year 4

Sales		$962,000
Cost of Sales	$535,000
Selling Expenses	144,600
Administrative Expense	159,800
Interest Expense	31,400
Income Tax	37,000
		907,800
Net Income		$54,200
Attributable to:
Panet Shareholders		$49,480
Non-controlling interest		4,720

Panet Corporation purchased its 80% interest in Saffer Corporation on January 1, Year 2, for $114,000 when Saffer had net assets of $90,000. The acquisition differential was allocated $24,000 to databases (10-year life), with the balance allocated to equipment (20-year life). Panet issued $60,000 in bonds on December 31, Year 4. Saffer reported a net income of $26,000 for Year 4 and paid dividends of $10,000.

Selling and administrative expense includes the following:

Depreciation of buildings and equipment $37,500

Database amortization 2,400

Loss on land sale 2,500

Panet reported a Year 4 equity method income of $49,480 and paid dividends of $17,000.

Required - Prepare a consolidated cash flow statement for Year 4.