Protecto Corporation purchased 80 percent of Strand Companys outstanding shares on January 1, 20X1, for $44,800 more than book value. At that date, the fair value of the noncontrolling interest was $11,200 more than 20 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 $40,000 and later in the year sold it to Protecto for $55,000. Protecto is still holding the land as an investment. During 20X3, Protecto bonds with a value of $115,000 were exchanged for equipment valued at $115,000. On January 1, 20X3, Protecto held inventory purchased previously from Strand for $42,500. During 20X3, Protecto purchased an additional $95,000 of goods from Strand and held $48,000 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 $15,750, and on December 31, 20X3, it held goods it had purchased from Protecto for $9,800 during 20X3. Strands total purchases from Protecto in 20X3 were $26,000. Protecto sells inventory to Strand at cost plus a 40 percent markup. The consolidated balance sheet at December 31, 20X2, contained the following amounts:

	Debit				Credit
Cash		$	96,000
Accounts Receivable			150,000
Inventory			130,000
Land			73,000
Buildings and Equipment			450,000
Patents			42,000
Accumulated Depreciation						$	213,000
Accounts Payable							174,300
Bonds Payable							95,000
Noncontrolling Interest							48,700
Common Stock							130,000
Retained Earnings							280,000
Totals		$	941,000			$	941,000
b. Prepare a consolidated statement of cash flows for 20X3.