Detecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $24,000 more than book value. At that date, the fair value of the noncontrolling interest was $16,000 more than 40 percent of Strand's 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 $35,000 and later in the year sold it to Detecto for $45,000. Detecto is still holding the land as an investment. During 20X3, Detecto bonds with a value of $100,000 were exchanged for equipment valued at $100,000.
On January 1, 20X3, Detecto held inventory purchased previously from Strand for $48,000. During 20X3, Detecto purchased an additional $90,000 of goods from Strand and held $54,000 of this inventory on December 31, 20X3. Strand sells merchandise to the parent at cost plus a 20 percent markup.
Strand also purchases inventory items from Detecto. On January 1, 20X3, Strand held inventory it had previously purchased from Detecto for $14,000, and on December 31, 20X3, it held goods it had purchased from Detecto for $7,000 during 20X3. Strand's total purchases from Detecto in 20X3 were $22,000. Detecto sells inventory to Strand at cost plus a 40 percent markup.
The consolidated balance sheet at December 31, 20X2, contained the following amounts:

The following consolidation worksheet was prepared on December 31, 20X3. All elimination entries and adjustments have been entered properly in the worksheet. Detecto accounts for its investment in Strand using the fully adjusted equity method.

Required
a. Prepare a worksheet for a consolidated statement of cash flows for 20X3 using the indirect method.
b. Prepare a consolidated statement of cash flows for20X3.

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DETECTO CORPORATION AND STRAND COMPANY Consolldation Worksheet December 31, 20X3 Elimination Entries Detecto Corporation Company Strand CR Consolidated Income Statement Sales 400,000 488,000 90,000 22,000 Less: Cost of Goods Sold (280,000) 8,000 (287,000) 4,000 20,000 Less: Depreciation Expense Less: Amortization Expense Less: Other Expense Income from Strand Co Consolidated Net Income NCI in Net Income of Strand (25,000) (40,000) (5,000) (65,000) (30,000) 35,000 35,000 5,0001 22,400 139,400 (35,000) 19,400 79,400 116,000 2,000 118,000 91,000 Controlling Interest in Net Income 79,400 153,000 79,400 Statement of Retained Earnings 273,000 79,400 (50,000) 302,400 150,000 35,000 273,000 79,400 (50,000) 302,400 ning Balance Net Income Less: Dividends Declared 153,000 ing Balance 165,000 303,000 138,000 Balance Sheet Cash Accounts Receivable Inventory 26,800 80,000 120,000 61,800 120,000 199,000 40,000 90,000 2,000 Patent 25,000 130,600 130,400 15,000 in ary 4,000 Land Buildings & Equipment Less: Accumulated Depreciation 70,000 340,000 (165,000) 20,000 200,000 10,000 70,000 80,000 470,000 (180,000) 70,000 Total Assets 602,400 300,000 109,800 236,400 775,800 Accounts Payable Bonds Payable Common Stock Retained Earnings NCI in NA of Strand 80,000 120,000 100,000 302,400 15,000 70,000 50,000 165,000 95,000 190,000 100,000 302,400 88,400 303,000 138,000 Total Liabilities& Equity 602,400 300,000 360,200 233,600 775,800