Response to the following :
Caesar Saled inherited some investments, and he has received the annual reports of the companies. The financial statements of the companies are puzzling to Saled, and he asks you the following questions:
1. The companies label their financial statements as consolidated balance sheet, consolidated income statement, and so on. What are consolidated financial statements?
2. The consolidated balance sheet lists the asset Goodwill. What is goodwill? Does the presence of goodwill mean that the company's stock has increased in value?
Write a memo to answer each of Saled's questions.