In this model, we're asked to adjust the United Technologies balance sheet and income statement for 2014 to show the effect of the sale of their subsidiary Sikorski. If we look at the balance sheets, we've got United balance sheet here. That's a group balance sheet and includes their subsidiary Sikorski. We've also got Sikorsky standalone. On the right hand side, we've calculated United, excluding Sikorsky, but we haven't put the adjustments through yet, and we've deconsolidated Sikorsky from the United Figures. So whereas we had cash of 5,235, we then subtract out 75 of that and United's cash goes down to 5,160. So deconsolidation has happened, but we've still got a number of other adjustments. Let's have a look at them. First of all, we've got the sale price, so there'll be some cash proceeds that will also create a gain on sale. Those cash proceeds have been used for share buyback, and we've got the number of shares bought back and we've got a share price.

Lastly, we've also got capital gains tax payable. It's been calculated for us, but we need to now put it into the set of accounts. Important to note their tax is going to be paid in arrears, so let's go through that first adjustment. How's the cash proceeds? So our cash will go up by 9,083. However, there's also going to be gain on sale, gains on sale, go through the income statements, and then go through intech equity. So if we scroll down to the equity line, we can calculate our gain on sale as the 9,083 receives, less the 2,723 that we had as the value of the company in the accounts. So gain on sale, 6,360. Next up, what did they do with all of that cash? Well, they use some of it for a share buyback. So if we go back up to the top, we have a look at the number of shares bought back, which was 60, and we'll multiply that by the 101 share price, giving us 6,060. That needs to be a negative because that cash has been spent buying back shares.

What's the other side of that? Well, our equity will go down as well. It's a share buyback. Those shares don't exist outside anymore, so the equity reduces.

Finally, we have the tax payable. The tax payable was capital gain, tax payable in arrears, because it's in arrears, there won't be a cash impact here. Instead, we're going to create a liability and we're gonna put that into accrued liabilities. So the liability goes up by 2,400. That tax also has to go through the income statement and eventually goes through to equity. So our equity will go down by 2,400.

That now completes that divestment of Sikorsky. So let's see what's happened to the balance sheet overall, we have a look at their total assets. The group's total assets are now 89,021, whereas they were 91,289. That's because we've gotten rid of Sikorsky, even though we've received a lot of cash in compensation for getting rid of it. We also spent that cash on a share buyback. So total assets have gone down. Total liabilities and equity have gone down by the same amounts. What happens along the way? We had the shared buyback, cash proceeds and gain on sale and.