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Comparative consolidated financial statements for Pop and its 90%-owned subsidiary, Son Corporation, at and for the years ended December 31 are as follows:

Pop and Son Comparative Consolidated Statements (IN THOUSANDS)
	Year 2016	Year 2015	20162015
Income and Retained Earnings Statements
Sales	$ 1,350	$1,200	$150
Cost of sales	(700)	(649)	51
Depreciation expense	(102)	(102)	0
Other operating expenses	(278)	(241)	37
Noncontrolling interest share	(10)	(8)	2
Controlling share of income	260	200	60
Add: Beginning retained earnings	380	260	120
Less: Dividends	(80)	(80)	0
Ending Retained Earnings	$ 560	$ 380	$180
Balance Sheets at December 31
Assets
Cash	$ 111	$ 130	$ (19)
Accounts receivablenet	170	160	10
Inventories	280	240	40
Other current assets	200	162	38
Plant and equipmentnet	1,348	1,200	148
Patents	38	39	(1)
Total assets	$2,147	$1,931	$216
Equities
Accounts payable	$ 170	$ 126	$ 44
Dividends payable	42	34	8
Long-term liabilities	70	92	(22)
Capital stock	1,000	1,000	0
Other paid-in capital	240	240	0
Retained earnings	560	380	180
Noncontrolling interest10%	65	59	6
Total equities	$2,147	$1,931	$216

Required: Prepare a consolidated statement of cash flows for Pop and Son for the year ended December 31, 2016, using the direct method. All changes in plant assets are due to asset acquisitions with cash and depreciation. Suns net income and dividends for 2016 are $100,000 and $40,000, respectively.

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