Hello,

I have no idea what I'm doing. Could you take a look and let me know? I'm working on a consolidated statement of cash flows. :-(

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 DR CR Consolidated Income Statement Sales $ 440,000 $ 260, 000 $ 88,000 $ 592, 000 20,000 Less: Cost of Goods Sold (320, 000) (160, 000) $ 7,000 (371, 200) 80, 000 4,500 17, 300 Less: Depreciation Expense (28, 000) (18, 000) (46, 000) Less: Amortization Expense 7,500 (7,500) Less: Other Expense (36,000) (36, 000) (72, 000) Income from Strand Co. 33,675 40, 050 6,375 0 Consolidated Net Income $ 89,675 46,000 $ 155, 550 $ 115, 175 $ 95, 300 NCI in Net Income of Strand 6,750 1, 125 (5,625) Controlling Interest in Net Income 89, 675 46,000 $ 162, 300 $116, 300 89, 675 Statement of Retained Earnings Beginning Balance $ 270,000 $ 175, 000 $ 175, 000 $ 270, 000 Net Income 89, 675 46,000 162,300 $116, 300 89, 675 Less: Dividends Declared (56, 000) (22, 400) 22, 400 (56, 000) Ending Balance $ 303,675 $ 198, 600 $337, 300 $138, 700 $ 303, 675 Balance Sheet Assets Cash $ 25,000 $ 37,000 $ 62,000 Accounts Receivable 75,000 40, 800 115, 800 Inventory 110,000 90,600 8,000 189,900 2, 700 Patent $ 37,500 37,500 Investment in Subsidiary 225, 185 13, 600 217,360 5,950 31, 875 4,500 Land 74,000 20, 600 16,000 78, 600 Buildings and Equipment 381,000 245,000 74,000 552,000 Less: Accumulated Depreciation (169,000) (92,000) 74,000 (187,000) Total Assets $ 721, 185 $ 342,000 $ 135, 550 $349,935 $ 848,800 Liabilities & Equity Accounts Payable $ 133, 510 $ 15 , 400 $ 148,910 Bonds Payable 144,000 72,000 216,000 Common Stock 140,000 56,000 $ 56,000 140,000 Retained Earnings 303,675 198 , 600 337, 300 $138, 700 303,675 NCI in NA of Strand 2, 400 8, 040 40, 215 1, 050 5,625 Total Liabilities & Equity $ 721, 185 $ 342,000 $396, 750 $ 182, 365 $ 848,800Protecto Corporation purchased 85 percent of Strand Company's outstanding shares on January 1, 20X1, for $51,000 more than book value. At that date, the fair value of the noncontrolling interest was $9,000 more than 15 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 $42,000 and later in the year sold it to Protecto for $58,000. Protecto is still holding the land as an investment. During 20X3, Protecto bonds with a value of $120,000 were exchanged for equipment valued at $120,000. On January 1, 20X3, Protecto held inventory purchased previously from Strand for $35,000. During 20X3, Protecto purchased an additional $88,000 of goods from Strand and held $40,000 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 $14,500, and on December 31, 20X3, it held goods it had purchased from Protecto for $8,700 during 20X3. Strand's total purchases from Protecto in 20X3 were $20,000. Protecto sells inventory to Strand at cost plus a 45 percent markup. The consolidated balance sheet at December 31, 20X2, contained the following amounts: Debit Credit Cash $ 90,000 Accounts Receivable 125,000 Inventory 150,000 Land 75,000 Buildings and Equipment 460,000 Patents 45,000 Accumulated Depreciation $ 215, 000 Accounts Payable 186,050 Bonds Payable 96,000 Noncontrolling Interest 37,950 Common Stock 140,000 Retained Earnings 270,000 Totals $945,000 $945,000Required: 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 31, 20X3 Consolidation Entries Item Balance Debit Balance 1/1/X3 Credit 12/31/X3 Assets Cash $ 30,000 $ 28,000 $ 62,000 Accounts receivable 125,000 9,200 115,800 Inventory 150,000 39,900 189,900 Land 75,000 3,600 78,600 Buildings and equipment 460,000 92,000 552,000 Less: Accumulated depreciation (215,000) 74,000 (289,000) Patents 45,000 15,000 Total Assets $ 730,000 $ 754,300 Liabilities & Equity Accounts payable 0 Bonds payable 0 Common stock Retained earnings 0 Noncontrolling interest 0 Total Liabilities & Equity $ 0 $ 135,500 $ 111,200 $ 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 $ o $ 0