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Consolidated financial statements are prepared by combining the financial information of a parent company and its subsidiaries into one set of financial statements. These statements include the Consolidated Statement of Income, Balance Sheet, and Cash Flows, showing the overall financial performance of the entire group. Key metrics such as Net Sales and Net Income are presented on a consolidated basis, along with supplemental schedules detailing the results of operations and subsidiaries. An example is Walmart Inc, where the consolidated financial statements show the economic entity of the entire Walmart group.
