reparing Consolidated Statements
This reading illustrates the preparation of consolidated financial statements for Company P and Company S. Learning how
to interpret and analyze consolidated financial statements does not require knowing how to const
Interest expense - bonds
Interest income - bond investment
Equity in Smith Income
Separate company net income
Consolidated net income
NCI in Smith Income
Controlling interest in Cons Net Income
Retained Earnings 1/1
Cash Flow before working capital changes
Change in Inventory
Change in Acct. Pay.
Change in Acct. Rec.
1.Which of the following formulas should be used to allocate variable costs from service
departments to user departments?
A)budgeted unit rate total budgeted units planned to be used
B)actual unit rate total budgeted units planned to be use