Sorel Company Pattern Company 2015 2016 2015 2016 Sales revenue $250,000 $350,000 $500,000 $540,000 Cost of goods sold. Gross profit .. Expenses .. 310,000 $100,000 $140,000 $190,000 150,000 210,000 360,000 $180,000 125,000 $ 55,000 45,000 66,000 $ 74,000 120,000 Net income $ 55,000 $ 70,000
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Sorel is an 80%-owned subsidiary of Pattern Company. The two affiliates had the following separate income statements for 2015 and 2016. (attached)
Sorel sells at the same gross profit percentage to all customers. During 2015, Sorel sold goods to Pattern for the first time in the amount of $120,000. $30,000 of these sales remained in Pattern’s ending inventory. During 2016, sales to Pattern by Sorel were $150,000, of which $25,000 sales were still in Pattern’s December 31, 2016, inventory.
Prepare consolidated income statements including the distribution of income to the controlling and noncontrolling interests for 2015 and 2016.
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- Inventory (01/10/18)Raw materials 28800Work in progress 37000Finished goods 33600Sales (114000 @c5) 57000Carriage on raw materials 1470General expenses 25200Selling expenses 51840Plant and machinery 250280Land 50000Bank overdraft 32120Retained earnings 816Ordinary share capital 2000008% preference share 22000Goodwill 40000Bad debts 830Trade receivables 36433Discount allowed 1440Sundry payable 56636Trade investment 8840Advertising 2250Return inwards 9000Discount received 1920Carriage outwards 2280Production wages 126000Office salaries 4860Purchases of raw materials 168000Noodles 15000Factory rent 13600Office insurance 40800Depreciation on plant and machinery 4920InventoryRaw materials 35400Work in progress 39120Loose tools 3000Additional informationDuring the year, 129000 pieces were completed. The closing inventory of finished goods is valued at the cost price per nose mask produced.Goods manufactured during the year are to be transferred to the trading account at GHc 390000.Provide…A2 aii Use the following information for Delta Corporation: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a constant…Year 1 Year 2 Year 3 Year 4 $ % $ % $ % $ % Net Sales $ 500,000.00 100.00% $ 540,000.00 100.00% $ 577,800.00 100.00% $ 612,468.00 100.00% Cost of goods 265,000.00 53.00% $ 283,500.00 52.50% $ 300,456.00 52.00% $ 321,545.70 52.50% Gross Margin 235,000.00 47.00% $ 256,500.00 47.50% $ 277,344.00 48.00% $ 290,922.30 47.50% Operating expenses 210,000.00 42.00% $ 226,800.00 42.00% $ 245,565.00 42.50% $ 257,236.56 42.00% Operating proft 25,000.00 5.00% $ 29,700.00 5.50% $ 31,779.00 5.50% $ 33,685.74 5.50% Supposing that Mr. Ptolemy achieved his Year 3 and Year 4 performance goals as planned, compare the Year 1 through Year 4 yearly results. Hint: Calculate ‘ trends’ from Year 1 to Year 2, from Year 2 to Year 3, and from Year 3 to Year 4 in terms of NS, COGS, GM,OE and profit. Show your calculations and interpret the meaning of the obtained trend figures. Year 1-2…
- Dr Cr $000 $000 Ordinary share capital (500,000 shares) 1,000 Foreign currency translation reserve 26 Investment property 120 Retained earnings 1 January 2021 269 Inventory (raw materials) at 1 January 2021 20 Sales 1297 Purchases 349 Purchases returns 5 Sales returns 4 Carriage outwards 9 Work-in-progress at 1 January 2021 35 Intangible assets 342 Administrative wages 28 Machine – cost 259 Accumulated depreciation (machine) – 1 January 2021 80 Delivery vehicle hire 35 Distribution expenses 22 Administrative expenses 34 Directors’ salaries 92 Sales allowances 2 Accounts payable 494 Bank overdraft 3 Accounts receivable 381 Cash at bank 140 Land 303 2175 2175 During the year to 31 December 2021, assets with a…Use the following information (in thousands):a. ¥126,000 d. ¥63,000Answer:1Sales revenue¥300,000 Gain on sale of equipment90,000 Cost of goods sold164,000 Interest expense16,000 Selling & administrative expenses30,000 Income tax rate30%Determine the amount of net income.Lamar Swimwear Income Statement 20X1 20X2 20X3 Sales (all on credit) $ 1,200,000 $ 1,500,000 $ 1,875,000 Cost of goods sold 800,000 1,040,000 1,310,000 Gross profit 400,000 460,000 565,000 Selling and admin. Expense 239,900 274,000 304,700 Operating profit (EBIT) 160,100 186,000 260,300 Interest expense 35,000 45,000 85,000 Net income before taxes 125,100 141,000 175,300 Taxes 36,900 49,200 55,600 Net income (EAT) $ 88,200 $ 91,800 $ 119,700 Shares of common stock outstanding 30,000 30,000…
- Net Sales 36000 Commission received 6430 Interest received 3570 Cost of goods sold 7400 Dividends received 2220 From the above information the total income will be: a.OMR 41280 b.OMR 42820 c.OMR 48220 d.OMR 40820 Fast plz***********A2 1ai Use the following information for Delta Corporation : Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a…May Mahal Nang Iba Company Question: The net income for the year is a. P220,0000 b. P260,000 c. P130,000 d. P180,000
- Hw.131. Sheridan Corporation reported net sales of $284,700, cost of goods sold of $156,585, operating expenses of $43,800, net income of $28,470, beginning total assets of $537,100 and ending total assets of $604,200 (a1) Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, eg10.2%)lf the net sales 330 000 lD ., other revenue and gains 170 000 lD., building 500 000 lD ., notes payable 120 000 lD., cost of purchases 150 000 lD ., other expenses and losses 150 000 lD., the net profit is:- 250 000 lD. 830 000 lD . 120 000 lD . 200 000 lD . no one .Sales 8.250.000.00 Operating costs 4,725.000.00 Operating income 3,525,000.00 Interest expense 1,750,000.00 Earnings before taxes 1,775,000.00 Taxes (40%) 621,250.00 Net income 1,153,750.00 WACC = 8%, Total invested capital 24,875,000. Calculate the EVA. (2 decimal places)