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 Assets Cash Accounts Receivable Inventory Land Buildings &Equipment Less: Accumulated Depreciation Patents Total Assets Jan. 1, 20X3 Dec. 31, 20x3 $ 68,500 82,000 115,000 45,000 515,000 100,500 97,000 123,000 55,000 550,000 (186,500) (223,000) 5.000 4,000 $ 706,500 644,000 Liabilities and owners' Equity Accounts Payable Wages Payable Notes Payable Common Stock ($10 par value) Retained Earnings Noncontrolling Inte Total Liabilities and OwnersEquity $ 61,000 26,000 250,000 150,000 130,000 27,000 644,000 $66, 000 20,000 265,000 150,000 174,500 31,000 $ 706,500 res PEAR CORPORATION AND SUBSIDIARY Consolidated Cash Flow Worksheet Year Ended December 31, 20X3 Consolidation Entries Balance 1/1/X3 Balance 12/31/X3 Item Debit Credit 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 Total Liabilities & Equity 0 0 $ 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.) PEAR 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: 0 Cash at beginning of year Cash at end of year