Metal Corporation acquired 75 percent ownership of Ocean Company on January 1, 20X1. Consolidated balance sheets at January 1, 20X3, and December 31, 20X3, are as follows:

The consolidated income statement for \(20 \times 3\) contained the following amounts:

Metal Corporation and Ocean Company paid dividends of \(\$ 30,000\) and \(\$ 20,000\), respectively, in \(20 \times 3\).
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a. Prepare a workpaper to develop a consolidated statement of cash flows for \(20 \times 3\).

b. Prepare a consolidated statement of cash flows for \(20 \mathrm{X} 3\).

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Item Jan. 1, 20X3 Dec. 31, 20X3 Cash $ 68,500 $100,500 Accounts Receivable 82,000 97,000 Inventory 115.000 123.000 Land 45.000 55.000 Buildings and Equipment 515.000 550,000 Less: Accumulated Depreciation (186,500) (223,000) Patents 5.000 4,000 $644,000 $706.500