3. The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash flows for the consolidated entity. Consolidated Enterprises holds 80 percent of the stock of Separate Way Manufacturing. The following items are proposed for inclusion in the consolidated cash flow statement:

Decrease in accounts receivable	$	23,000
Increase in accounts payable		5,000
Increase in inventory		15,000
Increase in bonds payable		120,000
Equipment purchased		380,000
Common stock repurchased		35,000
Depreciation reported for current period		73,000
Gain recorded on sale of equipment		8,000
Book value of equipment sold		37,000
Goodwill impairment loss		3,000
Sales		900,000
Cost of goods sold		368,000
Dividends paid by parent		60,000
Dividends paid by subsidiary		30,000
Consolidated net income for the year		464,000
Income assigned to the noncontrolling interest		14,000

1). Prepare a statement of cash flows for Consolidated Enterprises Inc. using the indirect method of computing cash flows from operating activities.

2). Prepare a statement of cash flows for Consolidated Enterprises Inc. using the direct method of computing cash flows from operating activities.

1). Indirect method of computing cash flows from operating activities

2). Direct method of computing cash flows from operating activities