Consolidated income statement with downstream sales
The separate incomes (which do not include investment income) of Pic Corporation and Sil Corporation, its 80 percentowned subsidiary, for 2011 were determined as follows (in thousands):
|
Pic |
Sil |
|
|
Sales |
$800 |
$200 |
|
Less: Cost of sales |
400 |
80 |
|
Gross profit |
400 |
120 |
|
Other expenses |
200 |
60 |
|
Separate incomes |
$200 |
$ 60 |
During 2011, Pic sold merchandise that cost $40,000 to Sil for $80,000, and at December 31, 2011, half of these inventory items remained unsold by Sil.
Required : Prepare a consolidated income statement for Pic Corporation and Subsidiary for the year ended December 31, 2011.