In this model, United Technologies are selling their subsidiary Sikorsky. We're asked to adjust the United Technologies balance sheet and income statement for 2014 to show the effects of the sale. Underneath, you've got some information regarding the sale. You've got the sale price, the proceeds were all in cash and it was used for share buyback. You then got some details of the share BA buyback and the capital gains tax.

Underneath that, we've got the United Balance sheet, and this includes Sikorsky. So this is a group balance sheet. Next to that, you've got Sikorsky's figures standalone, and we need to do two jobs to start us off. The first of these is to come up with our totals for United, excluding Sikorsky. We need to set this up before we put all the adjustments in. So what we're gonna do is we'll start with the United figure, in this case, cash of 5,235, and we're then going to sum up all of the adjustments that we're going to make because of the divestment. I'm then going to copy that down, and when I come to subtotals, like this one here for total current assets, I'll then sum upwards. Let's fill in the rest of this column.

We do exactly the same for our current liabilities and long-term liabilities and all the way through to equity as well. Remember, we're not doing those subtotals just yet because those subtotals need to be added up vertically. So total current liabilities was already added up. I'm going to include that in my total assets. You've now got your total assets figure 91,289. Current liabilities add up and will include those total current liabilities in our total liabilities.

Last up then equity and total liabilities in equity.

And we have exactly the same figure, 91,289 and our balance check total liabilities minus total assets gives us a zero. So step one is done. We've come up with our template for United, excluding Sikorsky. Now we need to start putting some adjustments through, and this is the second thing we need to do. We need to deconsolidate Sikorsky. So we subtract out 75 of cash that were sikorsky's. The group had 5,235 of cash, but after subtracting out that 75, we've now got 5,160.

We need to make the same adjustment all the way down for Sikorsky because we need to quite literally strip their figures out from the group. The one item where we won't copy it down to will be equity. We don't Consolidate equity, therefore we don't have to de consolidate a subsidiaries equity either. Non-con controlling interests are absolutely fine. As I said, don't de consolidate the shareholder's equity. So the two jobs we had was firstly to come up with our United excluding Sikorsky column and then to de consolidate Sikorsky as a check. Let's go down to the bottom of the final column, and at the moment you should be unbalanced by seven.