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:

The 20X4 consolidated income statement contained the following amounts:

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.

Required
a. Prepare a worksheet to develop a consolidated statement of cash flows for 20X4 using the indirect method of computing cash flows from operations.
b. Prepare a consolidated statement of cash flows for20X4.

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Accounts Receivable Buildings & Equipment Less: Accumulated Depreciation $1,569,000 Accounts Payable Interest Payable Bonds Payable 5 Noncontrolling Interest Additional Paid-In Capital Total Liabilities & Owners Equity 488,000 Sales Cost of Goods Sold Depreciation Expense Interest Expense Loss on Sale of Land Goodwill Impairment Loss Consolidated Net Income Income to Noncontrolling Interest Income to Controlling Interest $600,000 375,000 45,000 69,000 20,000 12,000 (521,000) $ 79,000 (7,000) $ 72,000