Toyota Motor Company has 507 consolidated subsidiaries both inside and
Toyota Motor Company has 507 consolidated subsidiaries both inside and outside of Japan. It owns 100% of many of these companies and percentages ranging from 50% to 99% in the others. Toyota’s 2011 income statement showed the following (in billions of yen):
Income (loss) before income taxes and equity in earnings of affiliated companies . ¥563
Provision for income taxes ....................... (313)
Equity in earnings of affiliated companies ............... 215
Net income ........................... 465
Less: Net income attributable to the noncontrolling interests ........ (57)
Net income attributable to Toyota Motor Corporation ......... ¥408
Toyota’s 2011 balance sheet included an amount of ¥588 billion for “Noncontrolling Interest” and ¥1,827 billion in “Affiliated Companies.”
1. What net income would be attributable to stockholders in Toyota have been if Toyota had owned 100% of all its subsidiaries?
2. Suppose Toyota’s average ownership percentage of these consolidated subsidiaries is 90%. What was the total 2011 net income of the subsidiaries?
3. Toyota has 56 affiliated companies with a total net income of ¥642 billion. What was Toyota’s average percentage ownership of these affiliated companies? What is Toyota’s maximum percentage ownership of these companies?

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