Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of Pau de Arco, Inc. and its subsidiary, Kati Alis Co., as of December 31, 20X9, and for the year then ended is as follows: (see image below) In Pau de Arco's December 31, 20X9, consolidated Statement of financial position, the carrying amount of the inventory that Kati Alis purchased from Pau de Arco. Kati AlisConsolidatedStatement of financial position accountsAccounts receivable..P 26,000P19,000P 42,000Inventory....25,00050,00030,00067,000Investment in Kati Alis..Goodwill........30,000Noncontrolling interest.........10,000Stockholders' equity.............154,00050,000154,000Statement of comprehensive income accountsRevenues..........P200,000P140,000P300,000Cost of goods sold..150,000110,000225,000Gross profit.....50,00030,00075,000P9,000Equity in earnings of Kati Alis.Net income.........P36,000P20,000P36,000Additional informationDuring 20X9, Pau de Arco sold goods to Kati Alis at the same markup on cost that Pau de Arcouses for all sales. At December 31, 20X9, Kati Alis, had not paid for all of these goods and stillheld 50% of them in inventory.Pau de Arco acquired its interest in Kati Alis five years earlier (as of December 31, 20X9.)Pau de Arco

The amount of intercompany sales from Pau de Arco to Kati Alis during 20X9 is…

Answered: Selected information from the separate…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 10SPA: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...

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Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of Pau de Arco, Inc. and its subsidiary, Kati Alis Co., as of December 31, 20X9, and for the year then ended is as follows: (see image below) In Pau de Arco's December 31, 20X9, consolidated Statement of financial position, the carrying amount of the inventory that Kati Alis purchased from Pau de Arco.

Kati Alis
Consolidated
Statement of financial position accounts
Accounts receivable..
P 26,000
P19,000
P 42,000
Inventory....
25,000
50,000
30,000
67,000
Investment in Kati Alis..
Goodwill........
30,000
Noncontrolling interest.........
10,000
Stockholders' equity.............
154,000
50,000
154,000
Statement of comprehensive income accounts
Revenues..........
P200,000
P140,000
P300,000
Cost of goods sold..
150,000
110,000
225,000
Gross profit.....
50,000
30,000
75,000
P9,000
Equity in earnings of Kati Alis.
Net income.........
P36,000
P20,000
P36,000
Additional information
During 20X9, Pau de Arco sold goods to Kati Alis at the same markup on cost that Pau de Arco
uses for all sales. At December 31, 20X9, Kati Alis, had not paid for all of these goods and still
held 50% of them in inventory.
Pau de Arco acquired its interest in Kati Alis five years earlier (as of December 31, 20X9.)
Pau de Arco

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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