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This video tutorial continues the discussion on preparing combined financial statements after posting journal entries and trial balances. It highlights that combined financial statements do not involve parent-subsidiary relationships; instead, they pertain to entities like home offices and branches, which are not separate legal entities. These branches function as extensions of the home office and are required to prepare a single set of financial reports. The video emphasizes that the preparation of combined financial statements involves shipments recorded at cost, with a note that shipments at billed price, which include additional journal entries, will be discussed later.