Walesa Corporation paid \(\$ 179,000\) to acquire all the common stock of Ritz, Inc., and Ritz owes Walesa \(\$ 55,000\) on a note payable. Immediately after the purchase on May 31,19X7, the two companies' balance sheets were as follows:

\section*{Required}
1. Prepare a consolidation work sheet.
2. Prepare the consolidated balance sheet on May 31, 19X7. Show total assets, total liabilities, and total stockholders' equity. It is not necessary to classify assets and liabilities as current and long-term.

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Assets Cash.............. Accounts receivable, net. Note receivable from Ritz- Inventory......... Investment in Ritz........ Plant assets, net..... Total........ Liabilities and Stockholders' Equity Walesa Corporation Ritz, Inc. $ 18,000 $ 32,000 64,000 43,000 55,000 93,000 153,000 179,000 205,000 138,000 $614,000 $366,000 Accounts payable....... $ 76,000 $ 37,000 Notes payable... 118,000 123,000 Other liabilitics...... 44,000 27,000 Common stock....... 282,000 90,000 Retained earnings.. 94,000 89,000 Total $614,000 $366,000