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	Jan. 1, 20X3					Dec. 31, 20X3
Assets
Cash		$	71,500				$	103,500
Accounts Receivable			94,000					109,000
Inventory			116,000					124,000
Land			48,000					58,000
Buildings & Equipment			532,000					567,000
Less: Accumulated Depreciation			(168,500	)				(205,000	)
Patents			6,000					5,000
Total Assets		$	699,000				$	761,500
Liabilities and Owners Equity
Accounts Payable		$	55,000				$	60,000
Wages Payable			24,000					18,000
Notes Payable			241,000					256,000
Common Stock ($10 par value)			144,000					144,000
Retained Earnings			215,000					259,500
Noncontrolling Interest			20,000					24,000
Total Liabilities and Owners Equity		$	699,000				$	761,500

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

Sales					$	462,000
Cost of Goods Sold	$	241,000
Wage Expense		49,000
Depreciation Expense		36,500
Interest Expense		15,000
Amortization Expense		1,000
Other Expenses		31,000				(373,500	)
Consolidated Net Income					$	88,500
Income to Noncontrolling Interest						(10,000	)
Income to Controlling Interest					$	78,500

Pear and Sugar paid dividends of $34,000 and $24,000, 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.)

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	Jan. 1, 20X3					Dec. 31, 20X3
Assets
Cash		$	71,500				$	103,500
Accounts Receivable			94,000					109,000
Inventory			116,000					124,000
Land			48,000					58,000
Buildings & Equipment			532,000					567,000
Less: Accumulated Depreciation			(168,500	)				(205,000	)
Patents			6,000					5,000
Total Assets		$	699,000				$	761,500
Liabilities and Owners Equity
Accounts Payable		$	55,000				$	60,000
Wages Payable			24,000					18,000
Notes Payable			241,000					256,000
Common Stock ($10 par value)			144,000					144,000
Retained Earnings			215,000					259,500
Noncontrolling Interest			20,000					24,000
Total Liabilities and Owners Equity		$	699,000				$	761,500

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

Sales					$	462,000
Cost of Goods Sold	$	241,000
Wage Expense		49,000
Depreciation Expense		36,500
Interest Expense		15,000
Amortization Expense		1,000
Other Expenses		31,000				(373,500	)
Consolidated Net Income					$	88,500
Income to Noncontrolling Interest						(10,000	)
Income to Controlling Interest					$	78,500

Pear and Sugar paid dividends of $34,000 and $24,000, 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.)

b. Prepare a consolidated statement of cash flows for 20X3. (Amounts to be deducted should be indicated with a minus sign.)

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 Changes in operating assets and liabilities: 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 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: Cash at beginning of year Cash at end of year