Protecto Corporation purchased 60 percent of Strand Companys outstanding shares on January 1, 20X1, for $40,000 more than book value. At that date, the fair value of the noncontrolling interest was $16,000 more than 40 percent of Strands book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $66,000 and later in the year sold it to Protecto for $78,000. Protecto is still holding the land as an investment. During 20X3, Protecto bonds with a value of $180,000 were exchanged for equipment valued at $180,000. On January 1, 20X3, Protecto held inventory purchased previously from Strand for $50,500. During 20X3, Protecto purchased an additional $107,000 of goods from Strand and held $65,500 of this inventory on December 31, 20X3. Strand sells merchandise to the parent at cost plus a 25 percent markup. Strand also purchases inventory items from Protecto. On January 1, 20X3, Strand held inventory it had previously purchased from Protecto for $19,600, and on December 31, 20X3, it held goods it had purchased from Protecto for $8,400 during 20X3. Strands total purchases from Protecto in 20X3 were $24,000. Protecto sells inventory to Strand at cost plus a 40 percent markup. The consolidated balance sheet at December 31, 20X2, contained the following amounts:

Required: a. Prepare a worksheet for a consolidated statement of cash flows for 20X3 using the indirect method. (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.)

2. Awert 25.00 points Procte Corpondon purchand 60 percent of Strand Company's outstanding them on Janubry 1, 20x1, Tor 340,000 more than book volwe Arnet date, the forwahofthenoncontrolling h est w 110,000 more than 40 percent of Strand book was. The Mount of the one considered and to petonta dobre wrnortired overnighty period. In 20x1, Srand purchased a piece of land for 399,000 and were pour votre Protect for 170,000. Prohicho Molding the end a inement During 2013, Proiecto bonds with a value of 1180.000 Catharged for equipment uued at $180,000 On January 1, 20X3. Protecto inventory purchased previously trom Stand for $50,500. During 20X3, Protecto purchased a hond 3107.000 grooth from Stendendo 355,000 of vertory on December 31, 2X Strand woh Merchandise the peront tout plus 25 percer martup Shind who purchases Investory na tom proiecte On January 1, 20X3. Strand held to the previously purchased from Proiectelor 319,000 and on December 31, 20X3, Mold goods the purchased from Protecta for $8.400 during 20x3. Sranda tool purchase from Protecton 20x3 ore 324.000. Proiect worventory to Suund cool plus 40 percent to The consolidated balunos theel erober 31, 20X2, contained the following mounts: Dua Cash 100,000 Account Reche 199.000 Tvary 150,500 Land 8100 Buding Equipment 519.000 Per 12.000 Accumulated Depreciation 1 411.000 Account Porte 102440 Bonda Puybre 22000 Nongontrolling Internet 115.100 Commen Stock 230 000 Roteired Earnings 3.000 To 11000 107500 DR come Statement The conto dellon worksho below was prepared on December 31, 20X3. All consolidation entre and menta have been entered property in the worksheet Protecto Wocus for its hvertmartin Strand wing the W a ted equity method. PROTECTO CORPORATON AND STRAND COMPANY Contodon Worksheet December 31, 2013 Condutton Entries Protecla Stud Corporation Coro Condad 300,000 390,000 3107.000 $ 700.000 N.000 Los: Cowl of Gooth Sold $120.00) (270,00 110.100 (210.000 32.000 00g 11.000 Lost Depan Espere 190,00 (T0.000) Lo Amor Espen 7.000 Lose One Espere BOG 149.000) (RO) Income from Srend Co. 1.500 200 Console Nincome 41,600 3104.000 $134.400 17.30 Nalinnon fring 15229 02.COAL Controlling Intern Med Income 355.000 141.000 In 200 2133 700 Sent of M ed Earrings Beginning Balance 1 100 000 0190 000 1 103 Ned Income 610OC 41 DOO 170.700 3131.300 65.600 Lees Didenda Dedend 0.0002 DOG $3.000 Enong Balance 2 MIRO (7.000 9 NOS Anota Cou Account Recetable Terry $ 43.000 # 30.400 12.000 131,000 43300 $ 11, 100 73.400 13.200 200.500 35.000 2400 Pan Investment in Subulary 107.0 195.000 7200 Ong 105.000 21,000 12.000 70.000 Lund Buildings and tour Low Acum Deprecation Total Asenta 70,000 480.000 81,000 7. 22.000 100,000 100.000) 23,00 70,000 17.000 690.000 (211.000 11010100 MX00 Liabile Equity Account Payable $ 11,44 .200 $ 112,040 170.000 20.000 Bondt Paythe Common Stock Ruth Eaming NCI NA Srond .000 7.000 104.000 $ 70.000 30.X LOG m2.000 20.000 44900 113.00 4040 104 400 1A Town Equity 17.40 12.00 KM DAR Trono 11010 100 Required: Prepare a worksheet for a consolidated aborteril oloush how for 20x3 vaing the Indirect method. (Value In the first two columna (the parent and subeldiary" balances) that are to be deducted should be indicated with minut sign, while all valun in the "Consolidation Entries columns should be entered in poltve values. For account where multiple dating entries and Inquired, combine ait debitantes into one amount and enter the amount in the table of the worksheet miarty, combine all credit entries into one amount and enter this mount in the crede column of the worldhett) PROTECTO CORPORATION AND SUBSIDIARY Commo n s Per Workshow Your Ended Dec 31, 2013 Comodatko. L et Llanco Deble Cred und Olence 120x3 C . m Account on ory Land butong and equipment Acomte danom 100.000 120.000 134,500 01.000 $10.000 211.000 100 2.500 100,000 190.000 150,500 61.000 810.000 211.000 .0001 Total Art bikes Equity Account Payable Bondu pays Luck Retained ning Hancontroing the TOLON & Ewy Cash Flow from opreg Ache. Consolidated room Amortion Dopredatto per Decrean count horreth ventory 142140 12.000 130.000 201.000 12100 M2500 250.000 115.100 2.00 Cash Flow from I n Acther: Perchase of und Acquation of building and equipment from bond Purchawal buildings and equipment Cash Flow throm founding Act Dhade To Pronto Corp. therhoden Do noncontrolling the wholder ang banda karburg and equipment Decree hesh Proen contabidad totument of cash tort for 20%. (Amount to be deducted should be indicated with a minw olgn.) PROTECTO CORPORATION ANO SUBSIDIARY Consolidated of Cash Flowe Your Ended December 31, 20X3 Cash Flow Town Opening Acth Consolidated at come Aintments for noncohem Amortion pense Deproton e per Chorow in opere honda Decreto norwehrvertory Decree or perhe Nech proved by operating the Cash Flowtrom Investing Active Marchese fund Purchase of butangend e n Nel cash dhing Me Celow for Financing AM Onderde Port To Powd Company therholders To morgonrong wherwoche Nooh wedi arding sche Nel terreincah Canh bulance beginning of your Cash belonged and of your 100 000 $ 100.000 Referenced Financial Statements Dmounty 3 Hard Leaming Object Chow 10-01 Prepare a consolidated statement of 2. Awert 25.00 points Procte Corpondon purchand 60 percent of Strand Company's outstanding them on Janubry 1, 20x1, Tor 340,000 more than book volwe Arnet date, the forwahofthenoncontrolling h est w 110,000 more than 40 percent of Strand book was. The Mount of the one considered and to petonta dobre wrnortired overnighty period. In 20x1, Srand purchased a piece of land for 399,000 and were pour votre Protect for 170,000. Prohicho Molding the end a inement During 2013, Proiecto bonds with a value of 1180.000 Catharged for equipment uued at $180,000 On January 1, 20X3. Protecto inventory purchased previously trom Stand for $50,500. During 20X3, Protecto purchased a hond 3107.000 grooth from Stendendo 355,000 of vertory on December 31, 2X Strand woh Merchandise the peront tout plus 25 percer martup Shind who purchases Investory na tom proiecte On January 1, 20X3. Strand held to the previously purchased from Proiectelor 319,000 and on December 31, 20X3, Mold goods the purchased from Protecta for $8.400 during 20x3. Sranda tool purchase from Protecton 20x3 ore 324.000. Proiect worventory to Suund cool plus 40 percent to The consolidated balunos theel erober 31, 20X2, contained the following mounts: Dua Cash 100,000 Account Reche 199.000 Tvary 150,500 Land 8100 Buding Equipment 519.000 Per 12.000 Accumulated Depreciation 1 411.000 Account Porte 102440 Bonda Puybre 22000 Nongontrolling Internet 115.100 Commen Stock 230 000 Roteired Earnings 3.000 To 11000 107500 DR come Statement The conto dellon worksho below was prepared on December 31, 20X3. All consolidation entre and menta have been entered property in the worksheet Protecto Wocus for its hvertmartin Strand wing the W a ted equity method. PROTECTO CORPORATON AND STRAND COMPANY Contodon Worksheet December 31, 2013 Condutton Entries Protecla Stud Corporation Coro Condad 300,000 390,000 3107.000 $ 700.000 N.000 Los: Cowl of Gooth Sold $120.00) (270,00 110.100 (210.000 32.000 00g 11.000 Lost Depan Espere 190,00 (T0.000) Lo Amor Espen 7.000 Lose One Espere BOG 149.000) (RO) Income from Srend Co. 1.500 200 Console Nincome 41,600 3104.000 $134.400 17.30 Nalinnon fring 15229 02.COAL Controlling Intern Med Income 355.000 141.000 In 200 2133 700 Sent of M ed Earrings Beginning Balance 1 100 000 0190 000 1 103 Ned Income 610OC 41 DOO 170.700 3131.300 65.600 Lees Didenda Dedend 0.0002 DOG $3.000 Enong Balance 2 MIRO (7.000 9 NOS Anota Cou Account Recetable Terry $ 43.000 # 30.400 12.000 131,000 43300 $ 11, 100 73.400 13.200 200.500 35.000 2400 Pan Investment in Subulary 107.0 195.000 7200 Ong 105.000 21,000 12.000 70.000 Lund Buildings and tour Low Acum Deprecation Total Asenta 70,000 480.000 81,000 7. 22.000 100,000 100.000) 23,00 70,000 17.000 690.000 (211.000 11010100 MX00 Liabile Equity Account Payable $ 11,44 .200 $ 112,040 170.000 20.000 Bondt Paythe Common Stock Ruth Eaming NCI NA Srond .000 7.000 104.000 $ 70.000 30.X LOG m2.000 20.000 44900 113.00 4040 104 400 1A Town Equity 17.40 12.00 KM DAR Trono 11010 100 Required: Prepare a worksheet for a consolidated aborteril oloush how for 20x3 vaing the Indirect method. (Value In the first two columna (the parent and subeldiary" balances) that are to be deducted should be indicated with minut sign, while all valun in the "Consolidation Entries columns should be entered in poltve values. For account where multiple dating entries and Inquired, combine ait debitantes into one amount and enter the amount in the table of the worksheet miarty, combine all credit entries into one amount and enter this mount in the crede column of the worldhett) PROTECTO CORPORATION AND SUBSIDIARY Commo n s Per Workshow Your Ended Dec 31, 2013 Comodatko. L et Llanco Deble Cred und Olence 120x3 C . m Account on ory Land butong and equipment Acomte danom 100.000 120.000 134,500 01.000 $10.000 211.000 100 2.500 100,000 190.000 150,500 61.000 810.000 211.000 .0001 Total Art bikes Equity Account Payable Bondu pays Luck Retained ning Hancontroing the TOLON & Ewy Cash Flow from opreg Ache. Consolidated room Amortion Dopredatto per Decrean count horreth ventory 142140 12.000 130.000 201.000 12100 M2500 250.000 115.100 2.00 Cash Flow from I n Acther: Perchase of und Acquation of building and equipment from bond Purchawal buildings and equipment Cash Flow throm founding Act Dhade To Pronto Corp. therhoden Do noncontrolling the wholder ang banda karburg and equipment Decree hesh Proen contabidad totument of cash tort for 20%. (Amount to be deducted should be indicated with a minw olgn.) PROTECTO CORPORATION ANO SUBSIDIARY Consolidated of Cash Flowe Your Ended December 31, 20X3 Cash Flow Town Opening Acth Consolidated at come Aintments for noncohem Amortion pense Deproton e per Chorow in opere honda Decreto norwehrvertory Decree or perhe Nech proved by operating the Cash Flowtrom Investing Active Marchese fund Purchase of butangend e n Nel cash dhing Me Celow for Financing AM Onderde Port To Powd Company therholders To morgonrong wherwoche Nooh wedi arding sche Nel terreincah Canh bulance beginning of your Cash belonged and of your 100 000 $ 100.000 Referenced Financial Statements Dmounty 3 Hard Leaming Object Chow 10-01 Prepare a consolidated statement of