Worksheet for Consolidated FINANCIAL STATEMENTS

EQUITY METHOD (Full Goodwill)

December 31, 2020
Income Statement Parent Subsidiary DR. CR. Consolidated
Sales 1,500,000 730,000 2,230,000
Investment Income 165,720 165,720 0
Total revenue 1,665,720 730,000 2,230,000
Cost of Goods sold 1,000,000 350,000 12,000 1,362,000
Depreciation Expense 38,567 2,500 41,067
Amortization Expense 400 400
Operating Expenses 300,000 150,000 450,000
Goodwill Impairment Loss 7,950 7,950
Total Cost and Expenses 1,338,567 500,000 1,861,417
Net income 327,153 230,000 368,583
NCI in Net Income-Subsidiary 41,197 -41,197
Net income to Retained Earnings 327,153 230,000 327,386
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 198,250 198,250
Subsidiary 11,000 11,000 0
Net Income, from above 327,153 230,000 327,386
Total 525,403 241,000 525,636
Dividends Paid
Parent Co. 210,161 - 210,161
Subsidiary 96,400 96,400 0
Retained Earnings, 12/31 to Balance Sheet 315,242 144,600 315,475
Balance Sheet
Cash 197,859 178,000 375,859
Accounts Receivable 67,850 4,100 71,950
Inventories 22,900 6,100 12,000 12,000 29,000
Store equipment 279,000 24,000 12,000 315,000
Delivery equipment 160,000 8,000 4,000 172,000
Patents 0 10,000 4,000 14,000
Goodwill 0 79,500 7,950 71,550
Investment in Subsidiary 238,600 60,800
89,200
88,600 0
TOTAL 966,209 230,200 1,049,359
Accumulated depreciation-Store eqpt. 195,300 0 0 2,000 197,300
Accumulated depreciation-Delivery eqpt. 106,667 0 0 500 107,167
Accumulated amortization 400 400
Accounts Payable 4,000 20,600 24,600
Bonds Payable 80,000 80,000
Common Stock 127,000 127,000
Common Stock 50,000 50,000 0
Additional Paid In Capital 138,000 138,000
Additional Paid In Capital 15,000 15,000 0
Retained Earnings 315,242 144,600 315,475
Non-controlling Interest 19,280 15,200
22300
41,197 59,417
TOTAL 966,209 230,200 436,547 436,547 1,049,359
Worksheet for Consolidated Financial Statements
EQUITY METHOD (Partial Goodwill)
December 31, 2021

Income Statement Parent Subsidiary DR. CR. Consolidated

Sales 1,800,000 900,000 2,700,000
Investment income 231,320 231,320 0
Total revenue 2,031,320 900,000 2,700,000
Cost of Goods sold 1,000,000 400,000 1,400,000
Depreciation Expense 38567 2,500 41,067
Amortization Expense 400 400
Operating Expenses 300,000 200,000 500,000
Goodwill Impairment Loss 6,360 6,360
Total Cost and Expenses 1,338,567 600,000 1,947,827
Net income 692,753 300,000 752,173
NCI in Net Income-Subsidiary 59,420 -59,420
Net income to Retained Earnings 692,753 300,000 692,753
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 315,242 315,242
Subsidiary 144,600 144,600 0
Net Income, from above 692,753 300,000 692,753
Total 1,007,995 444,600 1,007,995
Dividends Paid
Parent Co. 403,198 - 403,198
Subsidiary 177,840 177,840 0
Retained Earnings, 12/31 to Balance Sheet 604,797 266,760 604,797
Balance Sheet
Cash 436,933 300,160 737,093
Accounts Receivable 67,850 4,100 71,950
Inventories 22,900 6,100 0 29,000
Store equipment 279,000 24,000 10,000 313,000
Delivery equipment 160,000 8,000 3,500 171,500
Patents 0 10,000 3,600 13,600
Goodwill 0 57,240 6,360 50,880
Investment in Subsidiary 327,648 167,680
70,920
89,048 0
TOTAL 1,294,331 352,360 1,387,023
Accumulated depreciation-Store eqpt. 223,200 0 2,000 225,200
Accumulated depreciation-Delivery eqpt. 117,334 0 500 117,834
Accumulated amortization 400 400
Accounts Payable 4,000 20,600 24,600
Bonds Payable 80,000 80,000
Common Stock 127,000 127,000
Common Stock 50,000 50,000 0
Additional Paid In Capital 138,000 138,000
Additional Paid In Capital 15,000 15,000 0
Retained Earnings 604,797 266,760 604,797
Non-controlling Interest 35,568 41,920
3420
59,420 69,192
TOTAL 1,294,331 352,360 619,508 619,508 1,387,023