Mr. & Mrs. Dart own a majority of the outstanding capital
stock of Wall Corp., Black Co., and West, Inc. During year 1,
Wall advanced cash to Black and West in the amount of $50,000
and $80,000, respectively. West advanced $70,000 in cash to
Black. At December 31, year 1, none of the advances was repaid.
In the combined December 31, year 1 balance sheet of these
companies, what amount would be reported as receivables from
affiliates?

(d) Combined financial statements are financial statements
prepared for companies that are owned by the same parent
company or individual. Combined financial statements are prepared
by combining all the companies’ financial statement classifications.
Intercompany transactions and profits should be
eliminated in the same way as for consolidated statements.
Therefore, none of the intercompany receivables should be included
in the combined financial statements.