This workout asks us to calculate the group income statements assuming no synergies for this year Let's have a read through the information provided and see if there's anything that's going to affect that group income statement upon consolidation So first up, Trento is in the process of buying 100% of Trieste, entirely funded by equity Great! That means they haven't used any cash or debt to fund the acquisition and that means there won't be any interest expense or any interest income issues on the consolidated income statement Carrying on, the closing date is expected to be June 30th and the year end is December 31st Right, that is going to have an affect If I just add across, if I take Trento's (the investor's figures) plus Trieste's (the investee's figures) to get to my consolidated or combo figures, that's going to include the first six months of the year that we didn't own So what we're going to need to do is we're going to need take out or subtract Trieste pre deal date figures So let's do that now! Our first item takes Trieste's sales and then multiplies it by 6/12 So the January to June figures, we don't want them. We'll subtract off 1,269 when we add across I need to do the same thing to COGS, SG&A, interest income/expense and tax So now let's consolidate across, my combo figure will be Trento's plus Trieste's minus Trieste's pre deal data figures They didn't belong to us, they belonged to the previous shareholders I can now do the same thing all the way down Revealing all of my figures as I go Some of the sum totals will add upwards Operating profit, profit before tax and then net income Which then gets us to our consolidated net income 1,483.8