PROTECTO CORPORATION AND SUBSIDIARY

Consolidated Cash Flow Worksheet

Year Ended December 31, 20X3
Consolidation Entries
Item Balance 1/1/X3 Debit Credit Balance 12/31/X3
Assets
Cash $ 103,000 $ 27,500 $ 75,500
Accounts receivable $ 205,000 $ 66,200 $ 138,800
Inventory $ 152,000 $ 59,600 $ 211,600
Land $ 84,000 $ 3,600 $ 87,600
Buildings and equipment $ 540,000 $ 271,000 $ 811,000
Less: Accumulated depreciation $ (201,000) $ 76,000 $ (277,000)
Patents $ 33,300 $ 5,550 $ 27,750
Total Assets $ 916,300 $ 1,075,250
Liabilities & Equity
Accounts payable $ 165,540 $ 44,300 $ 121,240
Bonds payable $ 86,000 $ 195,000 $ 281,000
Common stock $ 260,000 $ 260,000
Retained earnings $ 286,000 $ 63,000 $ 76,110 $ 299,110
Noncontrolling interest $ 118,760 $ 15,200 $ 10,340 $ 113,900
Total Liabilities & Equity $ 916,300 $ 456,700 $ 456,700 $ 1,075,250
Cash Flows from Operating Activities:
Consolidated net income $ 86,450
Amortization expense $ 5,550
Depreciation expense $ 76,000
Decrease in accounts receivable $ 66,200
Increase in inventory $ 59,600
Decrease in accounts payable $ 44,300
Cash Flows from Investing Activities:
Purchase of land $ 3,600
Acquisition of buildings and equipment from bond issue $ 195,000
Purchase of buildings and equipment $ 76,000
Cash Flows from Financing Activities:
Dividends Paid:
To Protecto Corp. shareholders $ 63,000
To noncontrolling shareholders $ 15,200
Issuance of bonds for buildings and equipment $ 195,000
Decrease in cash $ 27,500
$ 456,700 $ 456,700
 PROTECTO CORPORATION AND SUBSIDIARY
Consolidated Statement of Cash Flows
Year Ended December 31, 20X3
Cash Flows from Operating Activities:
Consolidated net income $ 86,450
Adjustments for noncash items:
Amortization expense $ 5,550
Depreciation expense $ 76,000
Changes in operating assets and liabilities:
Decrease in accounts receivable $ 66,200
Increase in inventory $ (59,600)
Decrease in accounts payable $ (44,300)

Net cash provided by operating activities $ 130,300

Cash Flows from Investing Activities:
Purchase of land $ (3,600)
Purchase of buildings and equipment $ (76,000)

Net cash used in investing activities $ (79,600)

Cash Flows from Financing Activities:
Dividends Paid:
To Parent Company shareholders $ (63,000)
To noncontrolling shareholders $ (15,200)

Net cash used in financing activities $ (78,200)

Net decrease in cash $ (27,500)
Cash balance at beginning of year $ 103,000
Cash balance at end of year $ 75,500
 PROTECTO CORPORATION AND SUBSIDIARY
Consolidated Cash Flow Worksheet
Year Ended December 31, 20X3
Consolidation Entries
Item Balance 1/1/X3 Debit Credit Balance 12/31/X3
Assets
Cash $ 95,000 $ 31,800 $ 63,200
Accounts receivable $ 145,000 $ 24,200 $ 120,800
Inventory $ 135,000 $ 63,500 $ 198,500
Land $ 72,000 $ 6,400 $ 78,400
Buildings and equipment $ 440,000 $ 154,000 $ 594,000
Less: Accumulated depreciation $ (211,000) $ 44,000 $ (255,000)
Patents $ 39,000 $ 6,500 $ 32,500
Total Assets $ 715,000 $ 832,400
Liabilities & Equity
Accounts payable $ 164,100 $ 37,400 $ 126,700
Bonds payable $ 94,000 $ 110,000 $ 204,000
Common stock $ 120,000 $ 120,000
Retained earnings $ 278,000 $ 54,000 $ 93,850 $ 317,850
Noncontrolling interest $ 58,900 $ 5,400 $ 10,350 $ 63,850
Total Liabilities & Equity $ 715,000 $ 320,700 $ 320,700 $ 832,400
Cash Flows from Operating Activities:
Consolidated net income $ 104,200
Amortization expense $ 6,500
Depreciation expense $ 44,000
Decrease in accounts receivable $ 24,200
Increase in inventory $ 63,500
Decrease in accounts payable $ 37,400
Cash Flows from Investing Activities:
Purchase of land $ 6,400
Acquisition of buildings and equipment from bond issue $ 110,000
Purchase of buildings and equipment $ 44,000
Cash Flows from Financing Activities:
Dividends Paid:
To Protecto Corp. shareholders $ 54,000
To noncontrolling shareholders $ 5,400
Issuance of bonds for buildings and equipment $ 110,000
Decrease in cash $ 31,800
$ 320,700 $ 320,700
 PROTECTO CORPORATION AND SUBSIDIARY
Consolidated Statement of Cash Flows
Year Ended December 31, 20X3
Cash Flows from Operating Activities:
Consolidated net income $ 104,200
Adjustments for noncash items:
Amortization expense $ 6,500
Depreciation expense $ 44,000
Changes in operating assets and liabilities:
Decrease in accounts receivable $ 24,200
Increase in inventory $ (63,500)
Decrease in accounts payable $ (37,400)

Net cash provided by operating activities $ 78,000

Cash Flows from Investing Activities:
Purchase of land $ (6,400)
Purchase of buildings and equipment $ (44,000)

Net cash used in investing activities $ (50,400)

Cash Flows from Financing Activities:
Dividends Paid:
To Parent Company shareholders $ (54,000)
To noncontrolling shareholders $ (5,400)

Net cash used in financing activities $ (59,400)

Net decrease in cash $ (31,800)
Cash balance at beginning of year $ 95,000
Cash balance at end of year $ 63,200