• Sun Corporation was founded on January 1, 20X2, and quickly became success. On January 1, 20X6, the owners sold their 80% stake to Weatherbee Company at its book value. Weatherbee continues to operate the subsidiary as a separate legal entity and using the equity method to investment accounting at Sun. The following consolidated financial statements have been prepared as of December 31, 19X6: WEATHERBEE COMPANY AND SUBSIDIARIES Balance Sheet Consolidation January 1st 20X6 December 31st 20X6 54,000 $ 75,000 What 121,000 111,000 Accounts receivable 230,000 360,000 Preparation 95,000 100,000 Land 800,000 650,000 Buildings and Equipment (290,000) (230,000) Less: Accumulated Depreciation $1,010,000 $1,066,000 Total assets $90,000 $105,000 Accounts payable 300,000 250,000 Bond debt 30,000 38,000 Minority Ownership Common stock 300,000 300,000 Retained earning 290,000 373,000 Total Liabilities and Owner's Equity $1,010,000 $1,066,000 WEATHERBEE COMPANY AND SUBSIDIARIES Consolidated Income Statement For the Year Ended December 31, 20X6 Sale $1,070,000 Profits from Equipment Sales 30,000 $1,100,000 Cost of goods sold $750,000 Depreciation Load 40,000 Another bill Total Load CHAPTER 10 Other Issues in Consolidated Reporting 669 150,000 $(940,000) $160,000 Income for Minority Ownership Consolidated Net Income (12,000) $148,000 WEATHERBEE COMPANY AND SUBSIDIARIES Consolidated Retained Earnings Report For the Year Ended December 31, 20X6 Balance, January 1, 20X6 Net Profit 20X6 $290,000 148,000 Dividends Paid in Year 20X6 Balance, December 31, 19X6 $438,000 (65,000) $373,000 During the year. 20X6, Sun reports net income of $60,000 and pays dividends of $20,000; Weatherbee reported net income of $148,000 and pays a dividend of $65,000. There are no intercompany transfers during the current period. requested Prepare a working paper for the 20X6 consolidated cash flow statement using indirect method of calculating cash flow from operations.