Consolidated Income Statement

Consolidated. Put together. Combined.

Think of a consolidated income statement as a mash-up of the income statements of two merging companies, sorta like when Rihanna met Eminem, and there was that monster thing under the bed.

Is it likely that the combined company finds what are called synergies? That is, with more volume of product being ordered and/or more volume of advertisements being placed...might the company benefit from volume discounts?

Sure.

What about cross-promotion from lemonade drinkers to tea drinkers?

Sure.

What about the cost of accountants who used to separately prepare each statement for taxes, now combining efforts, likely at relatively cheaper prices per dollar earned?

The gist is that, when you consolidate an income statement, you are usually merging with or acquiring a competitor or supplier in an analogous business space. And most of the time...good things happen.

So yeah...now that you know how to consolidate an income statement, you can, uh…get busy.