Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary, Amihan Corporation is as follows: Perena P450,000 200,000 P250,000 Amihan P175,000 125,000 P 50,000 25,000 P 25,000 Sales . Cost of Sales. Gross profit Operating expenses Amihan's net income. Perena's separate income 125,000 P125,000 Intercompany sales for 2020 are upstream (from Amihan to Perena) and total P50,000. Perena's December 31, 2019 and December 31, 2020 inventories contain unrealized profits of P2,500 and P5,000 respectively. The Consolidated cost of sales for 2020:
Q: Baba Plc has owned 100% of the issued share capital of Onua Plc for many years. Baba Plc sells goods…
A: The cost of goods sold represents the cost incurred in selling the goods and services to the…
Q: Given below are the statements of financial position of H and its subsidiary of S as at 31st…
A: Consolidation is the process of merging the accounts of a subsidiary with the parent entity.…
Q: In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A…
A: Consolidated Financial statements present assets, liabilities, equities , income , expenses etc of…
Q: On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson…
A: IJK, is a public company which has its share available for retail investing. Therefore Kasson…
Q: 1. How much is the consolidated sales for 2022? 2. How much is the net income attributable to…
A: In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A…
Q: 80%-owned subsidiary for P210,000. A portion of this was resold by the subsidiary in 2022 for…
A: Consolidated balance sheet presents the financial position of the company in an affiliated group…
Q: Using either the direct or indirect method, compute net cash flows from operating activities during…
A: A cash Flow Statement is a part of the Financial Statement of a company. It literally means a…
Q: Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The…
A: Under the merger and acquisition when a company acquired other company, the acquiring company is…
Q: Consider the following income statement and other Infommation: Delat Corporatlon Consolidated Income…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: Green Co. sold inventories on May 1, 2019 to its 75% owned subsidiary, Indigo Company. The…
A: Non-controlling interest refers to the shareholders of the company who does not control the affairs…
Q: King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the…
A: As per international Financial reporting standards if fair value of assets greater than tax basis…
Q: Parent owns 90% of subsidiary. In 2019, parent paid dividends of $400,000 and subsidiary paid…
A: Share in subsidiary dividend = Total dividend paid by subsidiary x holding % = $100,000 x 90% =…
Q: Income information for 2019 taken from the separate company financial statements of Marinette…
A: This question deals with the calculation of net income attributable to equity share holders of…
Q: Parent and its 70% owned Subsidiary report the following at December 31 of the current year: Parent…
A: General Journal Debit Credit Gain on sale of Equipment 20,000 Retained…
Q: Y Inc. is a wholly owned subsidiary of P Corporation. The following are excerpts from the 2019…
A: Net income attributable to parent company is the consolidated net income after taxes and after…
Q: ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. DEF Co. Sales…
A: SOLUTION- THE NET INCOME OF SUBSIDIARY ON MULTIPLY WITH THE PERCENTAGE OF NON CONTROLLING INTEREST…
Q: King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the…
A: When Profit calculated as per the Tax basis is lower than the profit calculated as per the…
Q: On 1 October 2019 A-Star Co acquired 15 million of B-Star Co's 50 million shares in exchange for 40…
A: This question deals with the investment in associates. Entity is called to be an associate of of…
Q: The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean…
A: Particulars Amount Cash $76,000 Account Receivables $38,000 Inventory with Write up Amount…
Q: Cole Company owns 40% of Barnwell Inc. During the current year, Barnwell reported net income of…
A: When a company have the investment in another company, share in net income earned is added to the…
Q: The following separate income statements are for Burks Company and its 80 percent–owned subsidiary,…
A: Compute the basic EPS in the given situation Net income of Burks Company ($214,000 - $64,000)…
Q: For the year ended December 31, the following results were given:…
A: For year ended 31.12., Net income of parent company = P30200 Dividend paid = P15000 Net income after…
Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…
A: Tax refers to the amount charged by the government from the individual and companies on the income…
Q: .Platek Enterprises purchases 100 percent of Smith Company for P600,000. At that date Smith Company…
A: Net assets =Common stock + Retained earnings = 15000 + 255000 = P270,000
Q: Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports…
A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…
Q: Selected information from the separate and consolidated income statements of Poster Corporation and…
A: Answer:- Definition cost of goods sold:- The carrying value of the products sold during a specific…
Q: Up and its 80 percent–owned subsidiary (Down) reported the following figures for the year ending…
A: a. Sales: $790,000 (add the two book values and eliminate the $110,000 intra-entity transfer) Cost…
Q: Panel Corp. owns 75% of the voting ordinary shares of Saturated Corp. acquired at book value during…
A: Cost of Sales: The cost of goods sold as displayed on the consolidated financial statements of the…
Q: Platek Enterprises purchases 100 percent of Smith Company for P600,000. At that date Smith Company…
A: Net assets =Common stock + Retained earnings = 15000 + 255000 = P270,000
Q: Parent Subsidiary Sales P250,000 P60,000 Cost of Goods Sold 120,000 12,000 Depreciation Expense…
A: Following is calculation of imputed value of the subsidiary
Q: wned Subsidiary report the following at December 31 of the current year: Parent Net Income,…
A: a) Generally followed principles for distribution of income among depositors are that They share…
Q: 450,000
A: Inter company sale of inventory Inter company sales are the sales made by the head office to their…
Q: The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean…
A: Consolidation is the process of combining and joining financial statements of parent company and…
Q: Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary,…
A: Consolidated Cost of Sales:- It is calculated by adding both costs of sales of a parent as well as a…
Q: Selected information from the separate and consolidated income statements of Poster Corporation and…
A: Following is the original cost of goods in sings inventory acquired from poster Corp.
Q: If the unrealized profit of sales from parent to a subsidiary is GHC2,000 and NCI in the subsidiary…
A: It is an downstream transaction
Q: Teacher Inc. will issue share of P25-par ordinary share for the net assets of Student Co. Teacher…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: A.Selected information from the separate and consolidated income statements of CHARTER LTD. and as…
A:
Q: Income information for 2019 taken from the separate company financial statements of Marinette…
A: In consolidated financial statement , unrealised profit must be deducted in full . Cost of building…
Q: King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the…
A: Deferred Tax Liability: As the name suggests, the Deferred tax liability is a tax that has been…
Q: The parent company invested in walleye company when it consists Ordinary share 480,000 and Retained…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Vikings Inc. reports the following amounts: Book Value Fair Value Assets $400,000 $500,000…
A: Net assets = Fair value of assets - Liabilities to be taken = $500,000 - $45,000 = $455,000
Q: Sun is a 90 percent-owned subsidiary of Pam Corporation, acquired at book value several years ago.…
A: The Journal is the primary book in the books of accounts of any entity. It simply records all…
Q: 00 693,000 Gross profit P150,000 P 90,000 P
A: Gross profit of charter=150000 Selling price=600000 Gross profit Ratio as, =150000600000×100=25%
Q: Income information for 2019 taken from the separate company financial statements of Marinette…
A: This question deals with the calculation of gain on sale of building that needs to report by the…
Q: Income statement information for the year 2019 from the separate financial statements of Power…
A: In a consolidated financial statement, the whole amount of parent net income is recognized in the…
Q: ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. DEF Co. Sales…
A: Consolidated financial statements are the financial statements of a group consisting of multiple…
Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…
A: Data given: Abbey: Sales 2021 = $700,000 Operating expenses = $400,000…
Q: For the year ended December 31, the following results were given:…
A: NCI(Non Controlling Interest): It is usually referred as the share of a minority holding of an…
What is the consolidated cost of sales?
Step by step
Solved in 3 steps
- Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net income of $40 million. Included in the income was interest expense of $2,800,000. The companys tax rate was 40%. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon?Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017.2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise remained in Sub’s inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.3. Pub’s inventory at December 31, 2020, included items acquired from Sub on…Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s…
- Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021Sales $22,000 $18,500 $19,250Cost of sales 10,600 9,900 10,100Gross profit 11400 8600 9150Operating expenses 5,700 5,500 6,000Net income $ 5700 $ 3100 $ 3150ADDITIONAL INFORMATION1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017.2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the merchandise remained in Sub’s inventory at December 31, 2019. Total sales by Pub to Sub in 2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.3. Pub’s inventory at December 31, 2020, included items acquired from Sub on which Sub made…Fisafolia Corporation has gross income from operations of $426,600 and operating expenses of $362,610 for 2020. The corporation also has $42,660 in dividends from publicly-traded domestic corporations in which the ownership percentage was 45 percent. Below is the Dividends Received Deduction table to use for this problem. Percent Ownership 2020 DividendsReceived Percentage Less than 20 percent 50% 20 percent or more, but less than 80 percent 65% 80 percent or more 100% Assume that instead of $426,600, Fisafolia Corporation has gross income from operations of $350,000. Calculate the corporation's dividends received deduction for 2020.Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and 2021 are as follows (in thousands): 2019 2020 2021 Sales $22,000 $18,500 $19,250 Cost of sales 10,600 9,900 10,100 Gross profit 11400 8600 9150 Operating expenses 5,700 5,500 6,000 Net income $ 5700 $ 3100 $ 3150 ADDITIONAL INFORMATION Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021 period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and $7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its underlying book value, which was equal to fair value on July 1, 2017. Pub sold inventory items to Sub during…
- Presented below is financial information of the Mayer Corporation for 2020. Gain on the sale of investments Net sales Cost of goods sold Loss on disposal of wholesale division Interest revenue Loss on operations of wholesale division Selling and administrative expenses Dividends declared on common stock Write off of goodwill Dividends declared on preferred stock Effective tax rate on all items is 30% $170,000 $54,000,000 $38,000,000 $690,000 $115,000 $610,000 $9,700,000 $430,000 $800,000 $150,000 Mayer Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Mayer sold the wholesale operations. During 2020, there were 850,000 shares of common stock outstanding all year. Instructions: Compute each of the following. You must show your work. You may type your answers in the text submission box below or you can use the "Add File" button to upload a Word file or an Excel file. If this option does not work please email me to let me…Comparative income statements of Samba Corporation for the calendar years 2017, 2018, and 2019 are as follows (in thousands): 2017 2018 2019 Sales $14,000 $16,250 $16,850 Cost of Sales 8,100 8,900 9,100 Gross Profit 5,900 7,150 7,750 Operating Expenses 4,700 5,500 6,000 Net Income 1,200 1,650 1,750 ADDITIONAL INFORMATION 1. Samba was a 75 percent-owned subsidiary of Pamba Corporation throughout the 2017– 2019 period. Pamba’s separate income (excludes income from Samba) was $6,400,000, $5,600,000, and $7,000,000 in 2017, 2018, and 2019, respectively. Pamba acquired its interest in Samba at its underlying book value, which was equal to fair value on July 1, 2016. 2. Pamba sold inventory items to Samba during 2017 at a gross profit to Pamba of $650,000. Half the merchandise remained in Samba’s inventory at December 31, 2017. Total sales by Pamba to Samba in 2017 were $1,600,000. The remaining merchandise was sold by Samba in 2018. 3. Pamba’s inventory at December…Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above. 2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.
- The following information relates to Hardin Limited’s year-ended 31 December 2020: The statement of comprehensive income shows profit for the year of R154 000. The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000) Profit on sale of plant: R23 200 (before tax: R32 000) Inventory write-down: R10 000 (before tax: R15 000) The statement of changes in equity reflected preference dividends of R3 450. 12 000 shares in issue throughout the year. Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020Pat Matthew Company reported the following pre-tax information for its current year, 2020: $40,000 income from continuing operations and an $8,000 loss from discontinuing segment. Pat Matthew is subject to a 30% income tax rate. It had a total of 8000 shares of common stock outstanding for the year. Required: Starting with pretax income from continuing operations, prepare a partial Income Statement for Pat Matthew Company for 2020. Be sure you include Earning Per Share information.Income information for 2019 taken from the separate company financial statements of Marinette corporation and its 75% old subsidiary Adrian corporation is presented as follows Marinette Adrian Sales 1,000,000 460,0000 Gain on sale of Building 20,000 Dividend Income 75,000 Cost of Goods Sold -500,000 -260,000 Depreciation Expense -100,000 -60,000 Other Expense -200,000 -40,000 Net Income 295,000 100,000 Marinette gain on sale of building relates to a building with a book value of 40,000 and a 10 year remaining useful life that was sold to Adrian for 60,000 of January 1,2019. The profit attributable to equity holders of parent or CNA contributable controlling interest for 2019 should be: a.295,000 b. 277,000 c. 275,000 d. 220,000