Consolidated Statement of Cash Flows Sun Corporation was created on January 1, 20X2, and quickly

Consolidated Statement of Cash Flows

Sun Corporation was created on January 1, 20X2, and quickly became successful. On January 1, 20X6, its owner sold 80 percent of the stock to Weatherbee Company at underlying book value. At the date of that sale, the fair value of the remaining shares was equal to 20 percent of the book value of Weatherbee. Weatherbee continued to operate the subsidiary as a separate legal entity and used the equity method in accounting for its investment in Sun. The following consolidated financial statements have been prepared:

WEATHERBEE COMPANY AND SUBSIDIARY Consolidated Balance Sheets
	January 1, 20X6	December 31, 20X6
Cash	$ 54,000	$ 75,000
Accounts Receivable	121,000	111,000
Inventory	230,000	360,000
Land	95,000	100,000
Buildings & Equipment	800,000	650,000
Less: Accumulated Depreciation	(290,000)	(230,000)
Total Assets	$1,010,000	$1,066,000
Accounts Payable	$ 90,000	$ 105,000
Bonds Payable	300,000	250,000
Noncontrolling Interest	30,000	38,000
Common Stock	300,000	300,000
Retained Earnings	290,000	373,000
Total Liabilities & Owners’ Equity	$1,010,000	$1,066,000

WEATHERBEE COMPANY AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X6
Sales	$1,070,000
Gain on Sale of Equipment	30,000
	$1,100,000
Cost of Goods Sold	$ 750,000
Depreciation Expense	40,000
Other Expenses	150,000
Total Expenses	$ (940,000)
Consolidated Net Income	$ 160,000
Income to Noncontrolling Interest	(12,000)
Income to Controlling Interest	$ 148,000

WEATHERBEE COMPANY AND SUBSIDIARY Consolidated Retained Earnings Statement Year Ended December 31, 20X6
Balance, January 1, 20X6	$290,000
Income to Controlling Interest	148,000
	$438,000
Dividends Declared, 20X6	(65,000)
Balance, December 31, 20X6	$373,000

During 20X6, Sun reported net income of $60,000 and paid dividends of $20,000; Weatherbee reported net income of $148,000 and paid dividends of $65,000. There were no intercompany transfers during the period.

Required

Prepare a worksheet for a consolidated statement of cash flows for 20X6 using the indirect method of computing cash flows from operations.