all information given is provided

Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $25,000 more than book value. At that date, the fair value of the noncontrolling interest was $15,000 more than 40 percent of Strand's book value. The full amount of the differential is considered related to patents and is being amortized over an eight year period. In 20X1, Strand purchased a piece of land for $46,000 and later in the year sold it to Protecto for $65,000. Protecto is still holding the land as an investment. During 20X3, Protecto bonds with a value of $130,000 were exchanged for equipment valued at $130,000. On January 1, 20X3, Protecto held inventory purchased previously from Strand for $45,500. During 20X3, Protecto purchased an additional $97,000 of goods from Strand and held $50,500 of this inventory on December 31, 20X3. Strand sells merchandise to the parent at cost plus a 25 percent markup. Strand also purchases inventory items from Protecto. On January 1, 20X3, Strand held inventory it had previously purchased from Protecto for $13,300, and on December 31, 20X3, it held goods it had purchased from Protecto for $6,300 during 20X3. Strand's total purchases from Protecto in 20x3 were $29,000. Protecto sells inventory to Strand at cost plus a 40 percent markup. The consolidated balance sheet at December 31, 20X2, contained the following amounts: Credit Debit $ 90,000 140,000 162,000 75.000 420.000 30,000 Cash Accounts Receivable Inventory Land Buildings and Equipment Patents Accumulated Depreciation Accounts Payable Bonds Payable Noncontrolling Interest Common Stock Retained Earnings Totals 5201,000 146,240 90.000 72,760 130,000 223,000 $917,000 3912.000 The consolidation worksheet below was prepared on December 31, 20X3. All consolidation entries and adjustments have been entered properly in the worksheet. Protecto accounts for its investment in Strand using the fully adjusted equity method. PROTECTO CORPORATION AND STRAND COMPANY Consolidation Worksheet December 31, 20X3 Consolidation Entries Protecto Strand Corporation Company Consolidated Income Statement Sales $ 400,000 $ 290,000 $ 564,000 $ 97,000 29,000 Less: Cost of Goods Sold (330,000) (170,000) $ (373,000) 9,100 86,900 3,800 27,200 (30,000) (20,000) 5,000 (50,000) (5,000) (75,900) (39,000) (36,900) 35.000 38,100 $ $ Less Depreciation Expense Less Anortization Expense Less Other Expense Income from Strand Co. Consolidated Net Income NCT in Net Income of Strand Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less Dividends Declared Ending Balance $ 61,000 $ 61,000 38.000 $169,000 24,000 $193,000 3.000 $130,000 2.000 5132.000 60,100 22.000) 38,100 $ 33,100 $ $140,000 193,000 $ 273,000 18,100 (50,000) 3261, 100 $ 140,000 61.000 (25,000) $175.000 $132,000 25,000 $157,000 $273.000 38,100 (50,000) $ 261,100 $333,000 Balance sheet Assets Cash Accounts Receivable Inventory $ $ $ 28,000 82.000 121,000 38,000 41.200 91.000 66,400 123,200 200,100 $ 10.100 1.800 - AVVY 2.000 $132,000 Durawu (22.000) 38,100 $ 24,000 $193,000 38,100 S 61,000 $ NCI in Net Income of Strand Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance $ 273,000 38,100 (50,000) $ 261,100 $ 140,000 61,000 25,000) $ 176,000 $140,000 193,000 $132.000 25,000 $157.000 $ 273,000 38,100 (50.000) $ 261,100 $333,000 Balance Sheet Assets $ $ Accounts Receivable Inventory $ 28,400 82.000 121,000 38,000 41,200 91,000 66,400 123,200 200, 100 $ 10,100 1.800 25,000 Patent Investment in Subsidiary 125,340 $ 25.000 11.400 5,460 131,000 15.000 3.800 19,000 Land Buildings and Equipment Less: Accumulated Depreciation 76,000 410,000 (171,000) 21.000 190,000 (80,000) 60,000 60,000 78.000 540,000 (191,000) $ 841,700 Total Assets $671, 740 S 301,200 $105,660 $236,900 $ Liabilities & Equity Accounts Payable Donds Payable Common Stock Retained Earnings NCT in NA of Strand $ 130,640 150.000 130,000 261,100 11,200 74,000 40,000 176,000 $ 40,000 333,000 7.600 3,640 0384,240 $ 141,840 224,000 130,000 261,100 84,760 $157,000 36,000 10,000 $253,000 Total Liabilities & Equity $.671.740 $ 301,200 941,700 Required: a. Prepare a worksheet for a consolidated statement of cash flows for 20X3 using the indirect method. (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.) PROTECTO CORPORATION AND SUBSIDIARY Consolidated Cash Flow Worksheet Year Ended December 21, 20X3 Consolidation Entries Balance Debit Credit 1/1/X3 Item Balance 12/31/X3 Assets Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Patents Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock $ 0 0 $ Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Noncontrolling interest Total Liabilities & Equity Cash Flows from Operating Activities: Consolidated net income Amortization expense Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Cash Flows from Investing Activities: Purchase of land Acquisition of buildings and equipment from bond issue Purchase of buildings and equipment Cash Flows from Financing Activities: Dividends Paid: To Protecto Corp. shareholders To noncontrolling shareholders Issuance of bonds for buildings and equipment Decrease in cash b. Prepare a consolidated statement of cash flows for 20X3. (Amounts to be deducted should be indicated wit PROTECTO CORPORATION AND SUBSIDIARY Consolidated Statement of Cash Flows Year Ended December 31, 20X3 Cash Flows from Operating Activities: Adjustments for noncash items: Changes in operating assets and liabilities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Invidande Doint Changes in operating assets and liabilities: / / / / / N 1 / / 2 / Cash Flows from Investing Activities: A Cash Flows from Financing Activities: Dividends Paid: Cash balance at beginning of year Cash balance at end of year