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		$	79,500				$	111,500
Accounts Receivable			89,000					104,000
Inventory			116,000					124,000
Land			49,000					59,000
Buildings & Equipment			527,000					562,000
Less: Accumulated Depreciation			(171,500	)				(208,000	)
Patents			9,000					8,000
Total Assets		$	698,000				$	760,500
Liabilities and Owners Equity
Accounts Payable		$	57,000				$	62,000
Wages Payable			19,000					13,000
Notes Payable			248,000					263,000
Common Stock ($10 par value)			146,000					146,000
Retained Earnings			201,000					245,500
Noncontrolling Interest			27,000					31,000
Total Liabilities and Owners Equity		$	698,000				$	760,500

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

Sales					$	499,000
Cost of Goods Sold	$	255,000
Wage Expense		53,000
Depreciation Expense		36,500
Interest Expense		15,000
Amortization Expense		1,000
Other Expenses		45,000				(405,500	)
Consolidated Net Income					$	93,500
Income to Noncontrolling Interest						(11,000	)
Income to Controlling Interest					$	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 direct 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.)

Item Balance 1/1/X3 Debit Debit Credit Credit Balance 12/31/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 Sales Cost of goods sold Wage expense Depreciation expense Interest expense Amortization expense Other expenses Consolidated net income Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for interest on notes 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 PEAR CORPORATION AND SUBSIDIARY Consolidated Statement of Cash Flows Year Ended December 31, 20X3 Cash Flows from Operating Activities Cash Flows from Investing Activities: Cash Flows from Financing Activities: Cash at beginning of year Cash at end of year