Information related to Y4 The complete financial statements (Income Statement, Statement of Retained Earnings and Statement of Financial Position) for both Aylmer Inc and Belmont Inc are provided in the excel file for the year ended December 31, Y4. See the excel tab labelled "Financial Statements - Dec 31, Y4". Additional information for the financial statements and transactions related to Y4: Aylmer owed Belmont $133,000. . Intercompany sales (upstream) were $300,000. There was no beginning inventory. The markup on sales is 30% and 20% of the sales remaining in ending inventory. Income taxes can be ignored for calculations. 2. For December 31, Y4: a. Use the tab "Consolidation Dec 31, Y4": b. Prepare the consolidated financial statements (Income Statement, Statement of Retained Earnings and Statement of Financial Position) at December 31, Y4. c. Show all your work - such as the differential amortization schedule, inventory calculations, worksheets and any journal entries that may be required. 3. At December 31, Y4: a. Use the tab "Disclosure ~ Notes": b. Prepare any appropriate disclosures that should be included with the financial statements of Aylmer Inc. HINT: refer to chapters in the textbook for notes. Income Statements For the Year Ended December 31, Y4 Aylmer Inc Belmont Inc Sales $4,000,000 $2,300,000 Dividend Income 132,000 Total Revenue 4,132,000 2,300,000 Expenses: Cost of goods sold 2,698,500 1,455,000 Wage Expense 532,000 251,000 Other Expenses 159,000 89,600 Depreciation Expense 100,000 45,000 Total Expenses 3,489,500 1,840,600 Net Income $ 642,500 $ 459,400 Statement of Retained Earnings For the Year Ended December 31, Y4 Aylmer Inc Belmont Inc Balance, January 1, Y4 $10,008,900 1,510,748 Net Income 642,500 459,400 10,651,400 1,970,148 Dividends 250,000 165,000 Balance, December 31 $10,401,400 $1,805,148 Statements of Financial Position At December 31, Y4 Aylmer Inc Belmont Inc ASSETS Current Assets Cash and Cash Equivalents Investment in Belmont Inc. Accounts Receivable (net) Inventories, net Prepaid and other current assets Total Current Assets Property and equipment (net) Intangible Assets, net TOTAL ASSETS LIABILITIES $ 772,922 $ 397,650 4,555,678 4,298,000 1,159,535 425,600 516,500 203,450 321,900 10,255,650 2,395,585 9,766,750 130,000 3,135,163 $ 20,152,400 $5,530,748 Current Liabilities Accounts payable and accrued liabilities Other current liabilities $ 845,000 $ 725,600 Current portion of long term debt Total Current Liabilities Long Term Debt Total Liabilities SHAREHOLDERS EQUITY Common Stock Retained Earnings Total Shareholders' Equity 556,000 500,000 400,000 1,901,000 1,125,600 2,000,000 1,600,000 3,901,000 2,725,600 5,850,000 1,000,000 10,401,400 1,805,148 16,251,400 2,805,148 TOTAL LIABITILIES & SHAREHOLDERS' EQUITY 20,152,400 5,530,748