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:

ItemJan. 1, 20X3Dec. 31, 20X3Assets Cash $88,500 $120,500 Accounts Receivable 88,000 103,000 Inventory 120,000 128,000 Land 47,000 57,000 Buildings & Equipment 522,000 557,000 Less: Accumulated Depreciation (184,500) (221,000) Patents 7,000 6,000 Total Assets $688,000 $750,500 Liabilities and Owners Equity Accounts Payable $57,000 $62,000 Wages Payable 16,000 10,000 Notes Payable 240,000 255,000 Common Stock ($10 par value) 150,000 150,000 Retained Earnings 204,000 248,500 Noncontrolling Interest 21,000 25,000 Total Liabilities and Owners Equity $688,000 $750,500

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

Sales $472,500 Cost of Goods Sold$246,000 Wage Expense 54,000 Depreciation Expense 36,500 Interest Expense 16,000 Amortization Expense 1,000 Other Expenses 23,000 (376,500) Consolidated Net Income $96,000 Income to Noncontrolling Interest (11,500) Income to Controlling Interest $84,500

Pear and Sugar paid dividends of $40,000 and $30,000, 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" 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.)