Consolidations
Consolidated Income Statement
Generated for Q2 2024, combining Subsidiary A and Subsidiary B.
| Line Item | Subsidiary A | Subsidiary B | Eliminations | Consolidated Total |
|---|---|---|---|---|
| Revenue | $1,255,000 | $832,000 | -$150,000 | $1,937,000 |
| Cost of Goods Sold | -$520,000 | -$365,000 | $150,000 | -$735,000 |
| Gross Profit | $735,000 | $467,000 | $0 | $1,202,000 |
| Operating Expenses | -$310,000 | -$205,000 | $0 | -$515,000 |
| Net Income | $425,000 | $262,000 | $0 | $687,000 |
What are Consolidations?
Financial consolidation is the process of combining the financial statements of a parent company and its subsidiaries into a single set of financial statements.
This process is crucial for providing a comprehensive view of the overall financial health and performance of the entire group. It involves eliminating intercompany transactions to prevent double-counting of revenues and expenses.