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: Jan. 1, zex Dec. 31, 20x3 Item Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Patents Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Notes Payable Common Stock (sie par value) Retained Earnings Noncontrolling Interest Total Liabilities and Oumers' Equity $ 79,500 86,000 116,000 45,000 527,000 (169,500) 6,000 $ 690, $ 111,500 101,000 124, ece 55,000 562,00 (206,000) 5.000 $..752,500 5 53,000 21,000 245,000 132.000 217,000 22.000 $ 690,000 511,000 15.000 260,000 132,000 261,500 20,000 $ 752,500 The consolidated income statement for 20X3 contained the following amounts: The consolidated income statement for 20x3 contained the following amounts: $467,600 $25,000 45,000 Sales Cost of Goods Sold wage Expense Depreciation Expense Interest Expense Amortization Expense Other Expenses Consolidated Net Income Incone to Noncontrolling Interest Income to Controlling Interest 12.000 1.0 24,00 (373. 593,500 (11.000) $82,500 Pear and Sugar paid dividends of $38,000 and $28.000, respectively, in 20x3 Required: a. Prepare a worksheet to develop a consolidated statement of cash flows for 20x3 using the indirect method of computing cash flows from operations. (Values in the first two columns (the "parent" and "subsidiary" bolonces) that are to be deducted should be Indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered os 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.) Solidated Cash Flow Worksheet Year Ended December 31, 20X3 Consolidation Entries Balance Debit Credit 1/1/X3 Item Balance 12/31 $ 0 0 0 0 0 0 0 Assets Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Patents Total Assets Liabilities & Equity Accounts payable Wages payable Notes payable Common stock Retained earnings Noncontrolling interest 0 $ 0 $ 0 0 0 0 0 ols 015 $ 0 0 $ 0 $ 0 Noncontrolling interest Total Liabilities & Equity Cash Flows from Operating Activities Consolidated net income Depreciation expense Amortization of patent Changes in operating assets and liabilities Increase in accounts receivable Increase in inventory Increase in accounts payable Decrease in wages payable Cash Flows from Investing Activities Purchase of land Purchase of buildings and equipment Cash Flows from Financing Activities Increase in notes payable Dividends Paid To Pear Corporation shareholders To Sugar Company shareholders Increase in cash b. Prepare a consolidated statement of cash flows for 20X3. (Amounts to be deducted should be indicated with a minus sign) Check my w PEAR CORPORATION AND SUBSIDIARY Consolidated Statement of Cash Flows Year Ended December 31, 20X3 Cash Flows from Operating Activities Adjustments for noncashions ces Changes in operating assets and abilities 5 Cash Flows from Investing Activities $ 0 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 $ 0 Cash at beginning of year Cash at end of year 0