P4-2

PAL CORPORATION AND SUBDINARY

CONSOLIDATION WORKPAPER
FO THE YEAR ENDED DES 31, 2011

adjustmen and elimitation

pal 80% sal
D K
income statement sales 620 200
income from sal 21 21
cost of good sold (400) (130)
operatong expenses (154) (40)
consolidated net income
noncontrolling interest (30 X 9
30%)
controlling share 87 30
retained earning :
retained earning pal 130
retained earning sal 32 32
net income 87 30
dividends (60) (20) 14
6
retained earnings 31 des 157 32
balance sheet cash 91 30
receivable 120 60
inventories 48 40
plant and equipment 240 70
investment in sal 98 7
91
597 200
accounts payable 60 36
other liabilities 40 24
capital stock 300 100 100
other paidin capital 40 8 8
retained earnings 157 32
597 200
noncontrolling interest 1 jan 49
noncontrolling interest 31 des 3
170 170

PAL CORPORATION AND SUBDINARY

CONSOLIDATION INCOME STATEMENT
FO THE YEAR ENDED DES 31, 2011

sales 820
less: cost off goods sold (530)
gross profit 290
operating expenses (194)
consolidated net income 96
less : noncontroling invest share (9)
controlling share of cosolidated net income 87

PAL CORPORATION AND SUBDINARY

CONSOLIDATION INCOME STATEMENT
FO THE YEAR ENDED DES 31, 2011

consolidated retained earning 1 jan 130

add: controlling share of consolidated on income 87
less : dividends of pal (60)
consolidated retained earning 31 des 157

PAL CORPORATION AND SUBDINARY

CONSOLIDATION BALANCESHEET
FO THE YEAR ENDED DES 31, 2011

asset
current asset
cash 121
receivable net 180
inventories 88 389
pant asset net 310
total assets 699
liabilities and equity :
liabilities
account payable 96
other liabilities 64 160
equity :
capital stock, 10 par 300
other paid in captal 40
consolidated statement earning 157 497
add: noncontrolling interest 42 539
total liabilities and stockholder equity 599
consolidated statment

820
0
(530)
(194)
96

87

130

87
(60)

157
121
180
88
310

699
96
64
300
40
157

49
3
709
P4-2
PAN CORPORATION AND SUBDINARY
CONSOLIDATION WORKPAPER
FO THE YEAR ENDED DES 31, 2011

adjustmen and elimitation

PAN SAF
D K
income statement sales 800.0 200.0
income fro sal 27.6 27.6
cost of good sold (500.0) (100.0)
other expenses (194.0) (52.0) 11.2
consolidated net income
noncontrolling interest (52 X 9.2
30%)
controlling share 133.6 48.0

retained earning :
retained earning pan 360.0
retained earning saf 68.0 68.0
net income 133.6 84.0
dividends (100.0) (32.0) 24.0
8.0
retained earnings 31 des 393.6 84.0

balance sheet cash 106.0 30.0

account receivable 172.0 40.0
dividens receivable from af 12.0 12.0
inventories 190.0 20.0
note receivable from pan 10.0 10.0
land 130.0 60.0
building net 340.0 160.0
equipment net 260.0 100.0
investment in saf 363.6 24.0 3.6
360.0
patents 112.0 11.2

account payable 170.0 20.0

note paable to saf 10.0 10.0
dividends payable 12.0
capital stock 10 par 1000.0 300.0 300.0
retaine earning 393.6 84.0
1573.6 420.0
noncontrolling interest 1 jan 120.0
noncontrolling interest 31 des 1.2
 550.0 550.0

supporting calculutions

saf's value at actquition

book valueat 31 des 384
less: 2011 net income (48)
add: 2011 dividends 32
book value at jan 1 368
fairvalue of patents 112
saf's fair valueon jan 1, 2011 480

purchaseprice 360
noncontrolling interest 120

patents have 10 yr life

saf's adjusted income
saf's net income 48
less: amortization of patents (11.2)
saf's asjusted income 36.8
pan's 75% share 27.6
noncontrolling interesr 25%share 9.2
consolidated statment

1000.0
0.0
(600.0)
(257.2)
142.8

9.2

133.6

360.0

133.6
(100.0)

393.6

136.0
212.0

210.0

190.0
500.0
360.0

100.8

4.0
1000.0
393.6

1.2
1859.6