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Finance: What is a Consolidated Balance Sheet? 3 Views


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Description:

What is a Consolidated Balance Sheet? A consolidated balance sheet is one that includes all of the subsidiary companies’ aggregate balance sheets within a conglomerate company. For example, Berkshire Hathaway’s consolidated balance sheet would include the balance sheet info of wholly owned subsidiaries, such as See’s Candy, Dairy Queen, Spalding Sporting Goods, Fruit of the Loom, GEICO, and numerous other companies.

Language:
English Language

Transcript

00:00

Finance a la shmoop what is a consolidated balance sheet? okay people

00:08

this is a tale of two balance sheets it was the best of times right here and all [Lemonade stand balance sheet appears]

00:13

that cash no debt,, yeah and it was the worst of times and pretty much the

00:17

opposite and then one magical mergy day the two companies possessing these

00:23

two divergent balance sheets decided to you know merge it was a lovely ceremony [Bride and groom holding hands]

00:29

the bride wore white the groom stepped on the glass so then the balance sheets

00:33

were consolidated that is they were merged or combined or fully brought

00:37

together liabilities plus liabilities assets plus assets so the few dollars in

00:43

cash here in the worst of times balance sheet

00:47

well that was tacked on to the cash in the best of times balance sheet and the

00:51

same happened with long term liabilities and short and eventually after the

00:56

wedding night was you know consummated these two balance sheets had merged and [Man and girl standing by their lemonade stands]

01:00

consolidated and looked like this and that's what happens when companies merge

01:06

everything including their balance sheets consolidate let's hope they

01:10

generate lots of tiny cash flows and credits in the future....Mazel Tov

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