Traper Company holds 80 percent ownership of Arrow Company. The consolidated balance sheets as of December 31, 20X3, and December 31, 20X4, are as follows: Dec. 31, 20X4 Dec. 31, 20X3 Assets Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation S 181,000 175,000 370,000 160.000 980,000 (325,000) 28,000 83,000 210.000 320,000 190,000 850,000 (280,000) 40,000 Goodwill $1,413,000 Total Assets $1,569,000 Liabilities and Owners' Equity Accounts Payable Interest Payable Bonds Payable Bond Premium Noncontrolling Interest Common Stock Additional Paid-In Capital Retained Eamings S 52.000 74,000 45,000 400,000 18,000 40,000 300.000 70,000 488.000 30,000 500,000 16,000 44,000 300,000 70,000 535,000 Total Liabilities and Owners' Equity $1,413,000 $1,569,000 The 20X4 consolidated income statement contained the following amounts: Sales Cost of Goods Sold Depreciation Expense Interest Expense Loss on Sale of Land Goodwill Impairment Loss $ 600,000 $375.000 45,000 69.000 20,000 12,000 (521,000) Consolidated Net Income Income to Noncontrolling Interest $ 79.000 (7,000) Income to Controlling Interest $ 72,000 Traper acquired its investment in Arrow on January 1, 20X2, for $176,000 At that date, the fair value of the noncontrolling interest was $44,000, and Arrow reported net assets of $150,000 A total of $40.000 of the differential was assigned to goodwill. The remainder of the differential was assigned to equipment with a remaining life of 20 years from the date of combination Traper sold $100.000 of bonds on December 31, 20X4, to assist in generating additional funds. Arrow reported net income of $35.000 for 20X4 and paid dividends of $15.000. Traper reported 20X4 equity- method net income of $80,000 and paid dividends of $25.000 Denuirod- Required: a Prepare a worksheet to develop a consolidated statement of cash flows for 20X4 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.) TRAPER COMPANY AND SUBSIDIARY Consolidated Cash Flow Worksheet Year Ended December 31, 20X4 Consolidation Entries Balance 12/31/X4 Balance 1/1/X4 Debit Credit Item Assets Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Goodwill Total Assets Liabilities & Equity Accounts payable Interest payable Bonds payable Bond premium Common stock Additional Paid-In capital Retained earnings Noncontrolling interest Total Liabilities & Equity Sales Cost of goods sold Depreciation expense Interest expense Loss on sale of land Goodwill impairment loss Consolidated net income Cash Flows from Operating Activities Cash received from customers Goodwill impairment loss Consolidated net income Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid for interest on bonds payable Cash Flows from Investing Activities: Sale of land Purchase of buildings and equipment Cash Flows from Financing Activities Sale of bonds Dividends Paid: To Traper shareholders To noncontrolling shareholders Increase in cash a consolidated statement of cash flows for 20X4. (Amounts to be deducted should be b. Prepare indicated with a minus sign.) TRAPER COMPANY AND SUBSIDIARY Consolidated Statement of Cash Flows Year Ended December 31, 20X4 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Dividends Paid: Cash balance at beginning of year Cash balance at end of year