PRINCE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X7 Consolidation Entries Prince Corp Sword Co DR CR Consolidated Income Statement Sales $ 689,000 409,000 Less: COGS (494,000) (257,000) Less: Depreciation expense (21,000) (11,000) Less: Other expenses (62,000) (62,000) $ 1,098,000 (751,000) (32,000) (124,000) Income from Sword Co. 76,000 76,000 Net Income 188,000 $ 79,000 0 $ 0 267,000 Statement of Retained Earnings Beginning balance 367,000 $ 85,000 $ 452,000 Net income 188,000 79,000 267,000 Less: Dividends declared (58,000) (30,000) 30,000 (58,000) Ending Balance $ 497,000 $ 134,000 $ 0 $ 30,000 $ 661,000 Balance Sheet Assets Cash $ 92,000 $ 42,000 134,000 Accounts receivable 51,000 56,000 107,000