Lamia Co. bought 73.43% of the outstanding common shares of Helios Inc. for cash worth P91,257.95 and Lamia Co. common shares. On this date, Lamia Co. common shares have a market value of P62.78 a share respectively. Helios Inc. common shares drop to P49.09 per share right after the acquisition. On this date (January 1 2009), Helios Inc.'s stockholders' equity consisted of the following: Share Capital (par 25) 1,007,086.00 Share Premium 955,850.00 Retained Earnings 565,923.07 The book values of , Helios Inc.'s assets and liabilities approximate fair value except for the following: Book Value Fair Value Notes Current Assets 1,513,154.65 1,366,062.74 The excess was due to inventory with book value of P100,000. Half was sold in 2010, the rest were deemed obsolete by 2011 and was written off Plant Assets 4,702,621.44 8,161,255.01 The excess was due to two assets: Equiipment with excess of P200,000. It was depreciated using the straightline method for 8 years. Depreciation was always charged to Operating Expenses. Land had an excess of P250,000. The land was subsequently sold to a 3rd party company during 2011. You noted the following details: 1. On January 31 2009, Helios Inc. sold inventory to Lamia Co.. The cost of inventory is P250,000 on a gross margin on cost of 25%. 10% remains in ending inventory. All remaining inventory were sold to 3rd parties by 2010. 2. On June 30 2009, Helios Inc. bought 2,000, P1,000 face value bonds of Peach from the open market at a yield of 10%. The bonds were initially issued at 12% on January 1, 2009. It pays semiannual coupons pegged at 11%. for the next four years every June 30 and December 31. Helios Inc. intends to hold the investment to maturity 3. On December 31, 2010, Lamia Co. sold two pieces of equipment to Helios Inc. with a combined purchase cost of P750,000 for P300,000. It was originally depreciated over 8 years when it was bought on June 30, 2005. Helios Inc. estimates useful life of 5 years from December 31, 2009. 4. During 2010, Lamia Co. sold inventory to Helios Inc.. The intercompany sales were P400,000 on a gross margin of 40%. Only 40% were sold. Three-fourhts of the remaining inventory was sold in 2011. The rest were sold in 2012. 5. During 2010, Helios Inc. sold inventory to Lamia Co.. The intercompany sales were P200,000 on a gross margin on cost of 25%. Only 75% were sold. The rest were sold in 2011. The following shos the financial statements of Lamia Co. and Helios Inc. as of/for the period ending December 31, 2011. What is the Consolidated Financial Statements (except for cash flows) as of/for the period ending December 31, 2011. Lamia Co. Helios Inc. Sales (2,559,309.78) (1,780,868.40) CGS 844,908.09 1,027,947.76 Opex 222,824.41 171,177.99 Int Exp, net 45,227.78 37,644.00 Other exp, net 388,364.24 255,000.00 Net Income (1,057,985.25) (289,098.65) STATEMENT OF RETAINED EARNINGS Beg RE (985,266.04) (545,737.21) Net Income (1,057,985.25) (289,098.65) Dividends 85,392.35 27,795.93 End RE (1,957,858.94) (807,039.93) Beg NCI Net Income Dividends End NCI BALANCE SHEET Current Assets 1,539,299.95 1,297,507.42 PPE 4,867,407.19 5,023,183.79 Inv in Sub 1,495,365.73 - Other Assets 1,189,532.67 2,673,552.19 GW Total 9,091,605.53 8,994,243.40 Current Liab (823,703.10) (1,538,127.98) Bonds Payable (4,778,497.84) (1,973,208.03) Other NCL (514,936.41) (1,199,947.07) Share Capital (1,548,042.23) (1,007,086.00) Share Premium (2,017,711.12) (955,850.00) UGL (251,413.05) (100,000.00) RE 842,698.23 (2,220,024.32) NCI Total (9,091,605.53) (8,994,243.40)