First, save the file I sent to you with your last name and first initial at the start of the file name, with the six-digit original file name after your name. So, if my file was 123456.xlsx, I would save it as MannyW123456.xlsx. (Or whatever the Excel naming convention is, I think I had it wrong in my announcement.) Thats important so that I know whose file Im looking at.

2. The file has one tab, labeled with a letter or two (A or AD for example). Do not alter that worksheet, keep it exactly as you received it. It should be either the first or the last tab in your workbook, but it must be there and intact.

3. Note that I use the convention positive numbers are debits and negative numbers, shown in parentheses, are credits. You should use that same convention in making adjustments.

4. On a new worksheet, you will consolidate Parent and Subsidiary.

Set up a consolidation worksheet with parent, subsidiary and columns for adjustments, and consolidated amounts.

At the bottom of your worksheet is an amount of Intercompany Sales, from Subsidiary to Parent. Those sales were made to generate a gross profit at the percentage indicated with the intercompany sales amount. Just to be clear, the Intercompany Sales amount is at the selling price from Subsidiary to Parent.

Of the intercompany sales, one-half of the sales remain in Parent Companys inventory (part of Current Assets). Round if you must, do everything in whole dollars. Make appropriate adjustments for the inventory.

Parent Company charges a management fee to Subsidiary Company (related to services that Parent Company performs for Subsidiary). The fee is 1.5% of Subsidiarys sales. Subsidiary records the expense in Administrative expense. Parent Company records the income in Other Expense (since its income, it reduces the Other expense amount).

C D E F G Adj for fair Value Net Assets at fair value 285 105 21 27 2 52 24 A B 1 Stripe.Inc 2 Statement of Financial position 3 As of a Recent date 4 (Dollars in millions) 5 Particulars Net Book Value 6 Cash $285 7 Accounts receivable, net 105 8 Inventory(FIFO) 9 Ingredients 21 10 Finished goods 27 11 Land 2 12 Building 52 13 Right of use assets 24 14 Machinery& Equipment 209 15 Less, accumulated depreiciation -50 16 Intangible assets, net 1,853 17 Other noncurrent assets 13 18 Assets $2,541 19 Less 20 Current portion of long-term debt $12 21 Accounts payable 69 22 accrued liabilities 8 23 other current liabilities 2 24 Long-term debt 975 25 deferred income tax liabilites 256 26 Liabilities 1322 27 Net Asset Value 1219 28 Purchase Price 29 Goodwill Purchase Price-Net asset value 30 1434 209 -50 747 2600 13 3288 12 69 N 000 975 256 1322 1966 3400 C D E F G Adj for fair Value Net Assets at fair value 285 105 21 27 2 52 24 A B 1 Stripe.Inc 2 Statement of Financial position 3 As of a Recent date 4 (Dollars in millions) 5 Particulars Net Book Value 6 Cash $285 7 Accounts receivable, net 105 8 Inventory(FIFO) 9 Ingredients 21 10 Finished goods 27 11 Land 2 12 Building 52 13 Right of use assets 24 14 Machinery& Equipment 209 15 Less, accumulated depreiciation -50 16 Intangible assets, net 1,853 17 Other noncurrent assets 13 18 Assets $2,541 19 Less 20 Current portion of long-term debt $12 21 Accounts payable 69 22 accrued liabilities 8 23 other current liabilities 2 24 Long-term debt 975 25 deferred income tax liabilites 256 26 Liabilities 1322 27 Net Asset Value 1219 28 Purchase Price 29 Goodwill Purchase Price-Net asset value 30 1434 209 -50 747 2600 13 3288 12 69 N 000 975 256 1322 1966 3400