ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Careers Videos 112 videos

Finance: What is the Fast Market Rule?
11 Views

What is the Fast Market Rule? The fast market rule is something that is used in the U.K. to keep the market under control when any sort of crash ha...

Finance: What is the Dow Jones Industrial Average?
2710 Views

What is the Dow Jones Industrial Average? The Dow Jones Industrial Average is usually just called the Dow. It’s an average of 30 of the most well...

Finance: What is Arbitrage?
22228 Views

What is Arbitrage? Arbitrage is a trading strategy used to make risk-free money. The investor buys a security in one market and sells it in another...

See All

Finance: What is a Consolidated Balance Sheet? 3 Views


Share It!


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

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11939 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...