Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Sugar Company. Consolidated balance sheets at January 1, 20X3, and December 31, 20X3, are as follows:

Item	Jan. 1, 20X3					Dec. 31, 20X3
Assets
Cash		$	71,500				$	103,500
Accounts Receivable			87,000					102,000
Inventory			119,000					127,000
Land			48,000					58,000
Buildings & Equipment			530,000					565,000
Less: Accumulated Depreciation			(172,500	)				(209,000	)
Patents			7,000					6,000
Total Assets		$	690,000				$	752,500
Liabilities and Owners’ Equity
Accounts Payable		$	55,000				$	60,000
Wages Payable			22,000					16,000
Notes Payable			249,000					264,000
Common Stock ($10 par value)			138,000					138,000
Retained Earnings			203,000					247,500
Noncontrolling Interest			23,000					27,000
Total Liabilities and Owners’ Equity		$	690,000				$	752,500

The consolidated income statement for 20X3 contained the following amounts:

Sales					$	487,000
Cost of Goods Sold	$	259,000
Wage Expense		49,000
Depreciation Expense		36,500
Interest Expense		14,000
Amortization Expense		1,000
Other Expenses		44,000				(403,500	)
Consolidated Net Income					$	83,500
Income to Noncontrolling Interest						(9,000	)
Income to Controlling Interest					$	74,500

Pear and Sugar paid dividends of $30,000 and $20,000, respectively, in 20X3.

Required:
a. Prepare a worksheet to develop a consolidated statement of cash flows for 20X3 using the direct method of computing cash flows from operations. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

b. Prepare a consolidated statement of cash flows for 20X3. (Amounts to be deducted should be indicated with a minus sign.)

PEAR CORPORATION AND SUBSIDIARY
Consolidated Statement of Cash Flows
Year Ended December 31, 20X3
Cash Flows from Operating Activities
Cash Flows from Investing Activities:
Cash Flows from Financing Activities:
Cash at beginning of year
Cash at end of year