Ans:
Consolidated financial statements are the aggregated or combined figure of statements between a
parent company and its subsidiaries.
Consolidated balance sheet
As on 31/12/2020
Assets
P
S
Total
Current assets:
Cash
70,000
28,000
98,000
Accounts receivable
210,000
224,000
434,000
Inventory
252,000
140,000
392,000
532,000
392,000
924,000
Noncurrent assets:
Land
140,000
--
140,000
Equipment
7,000,000
3,780,000
10,780,000
Amortization, equipment
(2,478,000)
(1,736,000)
(4,214,000)
Investment in S
1,120,000
--
1,120,000
5,782,000
2,044,000
7,826,000
Total assets
6,314,000
2,436,000
8,750,000
Liabilities and shareholders equity:
Current liabilities:
Accounts payable
630,000
280,000
910,000
Noncurrent liabilities:
Loan payable
420,000
700,000
1,120,000
1,050,000
980,000
2,030,000
Shareholders equity:
Share capital
1,680,000
420,000
2,100,000
Retained earnings
3,584,000
1,036,000
4,620,000
5,264,000
1,456,000
6,720,000
6,314,000
2,436,000
8,750,000
Consolidated income statement
For the year ended 31/12/2020
Particulars
P
S
Total
Revenue:
Sales
2,804,200
2,100,000
4,904,200
Royalties
210,000
--
210,000
Dividends
100,800
--
100,800
3,115,000
2,100,000
5,215,000
Expenses:
Cost of sales
1,680,000
1,260,000
2,940,000
Other
784,000
575,400
1,359,400
2,464,000
1,835,400
4,299,400
Net income
651,000
264,600
915,600
Retained earnings statement
For the year ended 31/12/2020
P
S
Total
Opening retained earnings
3,353,000
897,400
4,250,400
Net income
651,000
264,600
915,600
Dividends declared
(420,000)
(126,000)
(546,000)
Closing retained earnings
3,584,000
1,036,000
4,620,000
Figures are added. P + S = Total.
Assets
P
S
Total
Current assets:
Cash
70,000
28,000
98,000
Accounts receivable
210,000
224,000
434,000
Inventory
252,000
140,000
392,000
532,000
392,000
924,000
Noncurrent assets:
Land
140,000
--
140,000
Equipment
7,000,000
3,780,000
10,780,000
Amortization, equipment
(2,478,000)
(1,736,000)
(4,214,000)
Investment in S
1,120,000
--
1,120,000
5,782,000
2,044,000
7,826,000
Total assets
6,314,000
2,436,000
8,750,000
Liabilities and shareholders equity:
Current liabilities:
Accounts payable
630,000
280,000
910,000
Noncurrent liabilities:
Loan payable
420,000
700,000
1,120,000
1,050,000
980,000
2,030,000
Shareholders equity:
Share capital
1,680,000
420,000
2,100,000
Retained earnings
3,584,000
1,036,000
4,620,000
5,264,000
1,456,000
6,720,000
6,314,000
2,436,000
8,750,000
Solution
Ans:
Consolidated financial statements are the aggregated or combined figure of statements between a
parent company and its subsidiaries.
Consolidated balance sheet
As on 31/12/2020
Assets
P
S
Total
Current assets:
Cash
70,000
28,000
98,000
Accounts receivable
210,000
224,000
434,000
Inventory
252,000
140,000
392,000
532,000
392,000
924,000
Noncurrent assets:
Land
140,000
--
140,000
Equipment
7,000,000
3,780,000
10,780,000
Amortization, equipment
(2,478,000)
(1,736,000)
(4,214,000)
Investment in S
1,120,000
--
1,120,000
5,782,000
2,044,000
7,826,000
Total assets
6,314,000
2,436,00.
AnsConsolidated financial statements are the aggregated or combin.pdf
1. Ans:
Consolidated financial statements are the aggregated or combined figure of statements between a
parent company and its subsidiaries.
Consolidated balance sheet
As on 31/12/2020
Assets
P
S
Total
Current assets:
Cash
70,000
28,000
98,000
Accounts receivable
210,000
224,000
434,000
Inventory
252,000
140,000
392,000
532,000
392,000
924,000
Noncurrent assets:
Land
140,000
--
140,000
Equipment
7,000,000
3,780,000
10,780,000
Amortization, equipment
4. 575,400
1,359,400
2,464,000
1,835,400
4,299,400
Net income
651,000
264,600
915,600
Retained earnings statement
For the year ended 31/12/2020
P
S
Total
Opening retained earnings
3,353,000
897,400
4,250,400
Net income
651,000
264,600
915,600
Dividends declared
(420,000)
(126,000)
(546,000)
Closing retained earnings
3,584,000
1,036,000
4,620,000
Figures are added. P + S = Total.
Assets
P
S
Total
Current assets:
7. Consolidated financial statements are the aggregated or combined figure of statements between a
parent company and its subsidiaries.
Consolidated balance sheet
As on 31/12/2020
Assets
P
S
Total
Current assets:
Cash
70,000
28,000
98,000
Accounts receivable
210,000
224,000
434,000
Inventory
252,000
140,000
392,000
532,000
392,000
924,000
Noncurrent assets:
Land
140,000
--
140,000
Equipment
7,000,000
3,780,000
10,780,000
Amortization, equipment
(2,478,000)
(1,736,000)
8. (4,214,000)
Investment in S
1,120,000
--
1,120,000
5,782,000
2,044,000
7,826,000
Total assets
6,314,000
2,436,000
8,750,000
Liabilities and shareholders equity:
Current liabilities:
Accounts payable
630,000
280,000
910,000
Noncurrent liabilities:
Loan payable
420,000
700,000
1,120,000
1,050,000
980,000
2,030,000
Shareholders equity:
Share capital
1,680,000
420,000
2,100,000
Retained earnings
3,584,000
1,036,000
4,620,000
5,264,000
9. 1,456,000
6,720,000
6,314,000
2,436,000
8,750,000
Consolidated income statement
For the year ended 31/12/2020
Particulars
P
S
Total
Revenue:
Sales
2,804,200
2,100,000
4,904,200
Royalties
210,000
--
210,000
Dividends
100,800
--
100,800
3,115,000
2,100,000
5,215,000
Expenses:
Cost of sales
1,680,000
1,260,000
2,940,000
Other
784,000
575,400
1,359,400
10. 2,464,000
1,835,400
4,299,400
Net income
651,000
264,600
915,600
Retained earnings statement
For the year ended 31/12/2020
P
S
Total
Opening retained earnings
3,353,000
897,400
4,250,400
Net income
651,000
264,600
915,600
Dividends declared
(420,000)
(126,000)
(546,000)
Closing retained earnings
3,584,000
1,036,000
4,620,000
Figures are added. P + S = Total.
Assets
P
S
Total
Current assets:
Cash
70,000
