Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Question
Chapter 12, Problem 4UTI
To determine
Operating profit:
Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).
Consolidated Operating profits:
Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.
Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.
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Chapter 12 Solutions
Advanced Accounting
Ch. 12 - Prob. 1UTICh. 12 - Prob. 2UTICh. 12 - Prob. 3UTICh. 12 - Prob. 4UTICh. 12 - Prob. 1.1ECh. 12 - Prob. 1.2ECh. 12 - Prob. 1.3ECh. 12 - Prob. 1.4ECh. 12 - Prob. 1.5ECh. 12 - Prob. 1.6E
Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4.1ECh. 12 - Prob. 4.2ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Ratable allocation for nonordinary items. Baxter...Ch. 12 - Prob. 9.1ECh. 12 - Prob. 9.2ECh. 12 - Prob. 9.3ECh. 12 - Prob. 10ECh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - Prob. 12.6PCh. 12 - Prob. 12.7.1PCh. 12 - Prob. 12.7.2PCh. 12 - Prob. 12.7.3PCh. 12 - Prob. 12.8.1PCh. 12 - Prob. 12.8.2P
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Similar questions
- Use a pie chart to illustrate the sources that comprise a hypothetical companys total value. Using another pie chart, show the claims on a companys value. How is equity a residual claim?arrow_forwardFind the below following:Gross Profit RatioOperating RatioNet Profit RatioOperating (Net) Profit RatioStock Turnover Ratioarrow_forwardGross profit minus total operating expenses is called ____________. Group of answer choices income from operations primary revenue secondary revenue other incomearrow_forward
- It is required to present earnings per share for: Select one: a.income from continuing operations before the effect of discontinued operations. b.the gross profit. c.operating income. d.Income before Other Comprehensive Income.arrow_forwardWhat is the consolidated cost of sales?arrow_forwardWhat is operating profitability ratio (OP)?arrow_forward
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