PEAR CORPORATION AND SUBSIDIARY
Consolidated Cash Flow Worksheet
Year Ended December 31, 20X3
		Consolidation Entries
Item	Balance 1/1/X3	Debit	Credit	Balance 12/31/X3
Assets
Cash				$0
Accounts receivable				0
Inventory				0
Land				0
Buildings and equipment				0
Less: Accumulated depreciation				0
Patents				0
Total Assets	$0			$0
Liabilities & Equity
Accounts payable				0
Wages payable				0
Notes payable				0
Common stock				0
Retained earnings				0
Noncontrolling interest				0
Total Liabilities & Equity	$0	$0	$0	$0
Sales
Cost of goods sold
Wage expense
Depreciation expense
Interest expense
Amortization expense
Other expenses
Consolidated net income
		$0	$0
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
		$0	$0

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	DEBIT	CREDIT
Cash Flows from Investing Activities:
Cash Flows from Financing Activities:
Cash at beginning of year
Cash at end of year

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: Jan. 1, 20X3 Dec. 31, 20X3 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 Noncontrolling Interest Total Liabilities and Owners' Equity $ 75,500 94,000 116,000 49,000 515,000 (186,500) 10,000 $ 673,000 $ 107,500 109,000 124,000 59,000 550,000 (223,000) 9,000 $ 735,500 $ 60,000 20,000 241,000 132,000 195,000 25,000 $ 673,000 65,000 14,000 256,000 132,000 239,500 29,000 $ 735,500 The consolidated income statement for 20x3 contained the following amounts: $ 501,000 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 $255,000 54,000 36,500 12,000 1,000 49,000 (407,500) $ 93,500 (11,000) $ 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.)