Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1. at underlying book value. At th 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, 2003 Dec. 31, 20x3 Sok 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 ($10 par value) Retained Earnings Non controlling Interest Total Liabilities and Owners' Equity $ 70,500 90,000 118,000 46,000 523,000 (171,500 7,000 $ 683,000 $ 102,500 105,990 126,000 56,000 558,000 (288,000 6,000 $745,500 k ences $ 43,000 24,099 244,000 149,000 202,000 21.000 $ 683,000 $ 48,000 18,000 259,900 149,000 246,500 25,000 $ 745,500 The consolidated income statement for 20X3 contained the following amounts: $ 482,500 Sales Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Amortization Expense Other Expenses Consolidated Net Income Income to Noncontrolling Interest Income to controlling Interest $256,000 53,000 36,500 12,000 1,000 28,000 (386,500) $ 96,000 (11,500 $ 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 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.) Balance 12/31/X3 PEAR CORPORATION AND SUBSIDIARY Consolidated Cash Flow Worksheet Year Ended December 31, 20X3 Consolidation Entries Balance Item Debit Credit 1/1/X3 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 Cash Flows from Operating Activities Consolidated net income Depreciation expense Amortization of patent ---- Notes payable Common stock Retained earnings 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.) 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 $ 0 Cash Flows from Investing Activities 0 Cash Flows from Financing Activities $ Cash at beginning of year Cash at end of year $ 0