The Cypress Tool & Die Company’s fiscal year ends on December 31. The company had the following items on its 20X1 income statement and balance sheet (in millions):
Net sales and other operating revenue .. $900
Investments in affiliated companies ... 100
Common stock, 11,000,000, $1 par ..... 11
Depreciation and amortization ..... 20
Accounts payable ........... 210
Cash ............... 20
Paid-in capital in excess of par ..... 101
Interest expense ........... 25
Retained earnings .......... 188
Accrued income taxes payable ..... 20
Cost of goods sold and operating expenses, exclusive of depreciation and amortization 660
Subordinated debentures, 11% interest, due December 31, 20X8 . 100
Noncontrolling interest in consolidated subsidiaries’ net income .. 20
Goodwill ......................... 95
First-mortgage bonds, 10% interest, due December 31, 20X9 ... 80
Property, plant, and equipment, net .............. 125
Preferred stock, 2,000,000 shares, $50 par, dividend rate is $3.5 per share 100
Short-term investments at market value ............. 45
Income tax expense .................... 90
Accounts receivable, net ................... 175
Noncontrolling interest in subsidiaries ............. 90
Inventories at average cost .................. 340
Dividends declared and paid on preferred stock ........... 7
Equity in earnings of affiliated companies ............. 20
Prepare Cypress’s consolidated 20X1 income statement and its consolidated balance sheet for
December 31, 20X1.