ADVANCED ACCOUNTING(LL) W/CONNECT
13th Edition
ISBN: 9781260282382
Author: Hoyle
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 19P
a.
To determine
Find the amounts which appear for each line in a consolidated income statement.
b.
To determine
Find the income tax expense which should appear on the consolidated income statement if each company files a separate return.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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…
Concord Corporation reported the following for 2025: net sales $6,160,000; cost of goods sold $3,686,500; selling and administrative
expenses $1,691,000; and an unrealized holding gain on available-for-sale securities $121,500.
(a)
Prepare a statement of comprehensive income using the one statement format. (Ignore income taxes and earnings per share.)
CONCORD CORPORATION
Income Statement and Statement of Comprehensive Income
$
The following are the statements of comprehensive income and financial positions of Green Limited:
Green Limited
Statement of Comprehensive Income for the Year Ended 31st December 2018
GH₵
GH₵
Sales
86,000
Less: Cost of goods sold
Opening stock
16,500
Purchases
48,000
64,500
Less closing stock
(24,000)
(40,500)
Gross profit
45,500
Less operating expenses
Administrative expenses
(9,000)
Depreciation
(4,000)
Selling & distribution expenses
(10,000)
(23,000)
Profit before interest and tax
22,500
Interest
(5,000)
Profit before tax
17,500
Corporate tax
6,000
Profit after interest & tax
11,500
Green Limited
Statement of Financial Position as at 31st December 2018
31/1/2018
31/12/017
Non-current assets
Plant & machinery
20,000
15,000
Motor…
Chapter 7 Solutions
ADVANCED ACCOUNTING(LL) W/CONNECT
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - On January 1, 2016, Uncle Company purchased 80...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Clarke has a controlling interest in Rogerss...Ch. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 1DYSCh. 7 - Prob. 2DYS
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following is the statement of comprehensive income of Green Limited: Green Limited Statement of Comprehensive Income for the Year Ended 31st December 2018 GH₵ GH₵ Sales 86,000 Less: Cost of goods sold Opening stock 16,500 Purchases 48,000 64,500 Less closing stock (24,000) (40,500) Gross profit 45,500 Less operating expenses Administrative expenses (9,000) Depreciation (4,000) Selling & distribution expenses (10,000) (23,000) Profit before interest and tax 22,500 Interest (5,000) Profit before tax 17,500 Corporate tax 6,000 Profit after interest & tax 11,500 Green Limited Statement of Financial Position as at 31st December 2018 31/1/2018 31/12/017 Non-current assets Plant & machinery 20,000 15,000 Motor vehicles 8,000…arrow_forwardPresented below are the condensed income statement of EVIA CORPORATION for the years ended December 31, 2018 and 2017. 2018 2017 Sales P5,000,000 P4,900.000 Cost of goods sold 3,350,000 3,300,000 Gross Income 1,650,000 1,600,000 Operating expenses 675,000 650,000 Operating Income 975,000 950,000 Gain on sale of division 200,000 - 1.175,000 950,000 Income Tax 30% 352,500 285,000 Net Income 822,500 665,000 On October 10, 2018 EVIA COMPANY entered into an agreement to sell the assets of one of its geographical segments. The geographical segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The segment was sold on December 31, 2018 for P1,750,000. The book value of the segments assets was P1550,000. The segment’s contribution to EVIA’s operating income before rax for each year was as follows:…arrow_forwardThe information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020: Harmony Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 6 600 000 Cost of sales (3 900 000) Gross profit 2 700 000 Operating expenses (1 710 000) Selling and administrative expenses 1 260 000 Depreciation 450 000 Operating profit 990 000 Interest expense (270 000) Profit before tax 720 000 Company tax (240 000) Profit after tax 480 000 Extract of Statement of Changes in Equity for the year ended 31 December 2020 Retained earnings R Balance on 01 January 2020 1 500 000 Profit after tax 480 000 Dividends paid and proposed in 2020 (180 000) Balance on 31 December 2020 1 800 000 Balances extracted from the Statement of Financial Position as at 31 December: 2020 2019 R R Plant and equipment 3 750 000 3 000 000 Investments 210 000 240 000 Inventories 1 290 000 1 230 000 Accounts receivable 1 140 000 1 050 000 Cash and cash…arrow_forward
- Comparative income statements of Samba Corporation for the calendar years 2017, 2018, and 2019 are as follows (in thousands): Sales Cost of sales Gross profit Operating expenses Net income 2017 $14,000 8,100 5,900 4,700 $1,200 2018 $16,250 8,900 7,150 5,500 $1,650 2019 $16,850 9,100 7,750 6,000 $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 31, 2018, included…arrow_forwardFinancial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization 1,300.0 1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization 39.0 31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0 Interest 36.0 29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0 Taxes (40%) 100.0 54.0 Net income $ 150.0 $ 81.0 Common dividends $ 135.0 $ 65.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0 Accounts receivable 164.0 143.0 Inventories 343.0 312.0 Total current assets $ 530.0 $ 473.0 Net plant and equipment 390.0 312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity…arrow_forwardollowing are financial statements for Moore Company and Kirby Company for 2021: Moore Kirby Sales $ (800,000) $ (600,000) Cost of goods sold 500,000 400,000 Operating and interest expenses 100,000 160,000 Net income $ (200,000) $ (40,000) Retained earnings, 1/1/21 $ (990,000) $ (550,000) Net income (200,000) (40,000) Dividends declared 130,000 –0– Retained earnings, 12/31/21 $(1,060,000) $ (590,000) Cash and receivables $ 217,000 $ 180,000 Inventory 224,000 160,000 Investment in Kirby 657,000 –0– Equipment (net) 600,000 420,000 Buildings 1,000,000 650,000 Accumulated depreciation—buildings (100,000) (200,000) Other assets 200,000 100,000 Total assets $ 2,798,000 $ 1,310,000 Liabilities $(1,138,000) $ (570,000) Common stock (600,000) (150,000) Retained earnings, 12/31/21 (1,060,000) (590,000) Total…arrow_forward
- The following are summarized financial statements of Anna Limited for the year ended 31st December 2022.Comparable figures for the previous year are also shown Income statement for the year ended 31st December 2022 2021 Shs 000 Shs 000 Sales 57,600 36,000 Less cost of goods (35,400) (21,000) GROSS PROFIT 22,200 15,000 Trading expenses (9,900) (8,100) Net profit before interest and tax 1 2,300 6,900 Less debenture interest (450) (450) Net profit before tax 11,850 6,450 Less corporate tax (5,760)…arrow_forwardBelow are the financial statements of Coco Stationary Statement of Comprehensive Income for the Year ended 31 December 2017 $ $ Sales 305,830 Cost of goods sold 210,935 Depreciation 26,850 Earnings before interest and taxes 68,045 Interest paid 11,930 Taxable income 56,115 Taxes (35%) 19,640 Net income 36,475 Dividends 20,000 Retained earnings 16,475 Coco Stationary Statement of Financial Position as at 31 December 2017 $ Net plant and equipment 260,525 Cash 22,050 Accounts receivable 13,850 Inventory 24,650 Total current assets 60,550 Total assets 321,075 Ordinary shares 25,000 Retained earnings 167,840 Total owners' equity 192,840 Long term debt 85,000 Accounts payable 22,850 Notes payable 9,000 Other 11,385 Total current liabilities 43,235 Total liabilities after owners' equity 321,075 Calculate the following financial ratios as at 31 December 201 Profitability ratios i.…arrow_forwardBelow are the financial statements of Coco Stationary Statement of Comprehensive Income for the Year ended 31 December 2017 $ $ Sales 305,830 Cost of goods sold 210,935 Depreciation 26,850 Earnings before interest and taxes 68,045 Interest paid 11,930 Taxable income 56,115 Taxes (35%) 19,640 Net income 36,475 Dividends 20,000 Retained earnings 16,475 Coco Stationary Statement of Financial Position as at 31 December 2017 $ Net plant and equipment 260,525 Cash 22,050 Accounts receivable 13,850 Inventory 24,650 Total current assets 60,550 Total assets 321,075 Ordinary shares 25,000 Retained earnings 167,840 Total owners' equity 192,840 Long term debt 85,000 Accounts payable 22,850 Notes payable 9,000 Other 11,385 Total current liabilities 43,235 Total liabilities after owners' equity 321,075 Calculate the following financial ratios as at 31 December 2017 a. Liquidity ratios: 1)…arrow_forward
- Here are comparative financial statement data for Sheridan Company and Pina Company, two competitors. All data are as of December 31, 2025, and December 31, 2024. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings Sheridan Company 2025 $1,874,000 1,069,000 266,000 8,100 71,600 488,963 $468,615 750,000 113,723 135,000 750,000 219,892 790,200 99,488 170,985 750,000 2024 258,690 Pina Company 2025 $563,000 281,000 91,000 2,500 35,000 125,004 209,592 53,022 44,430 180,000 57,144 2024 $119,201 188,718 45,422 37,500 180,000 44,997arrow_forwardSteele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 Net sales $7,245,088 $6,944,296 $6,149,218 Cost of goods sold (5,286,253) (4,953,556) (4,355,675) Gross margin $1,958,835 $1,990,740 $1,793,543 General and administrative expenses (1,259,896) (1,202,042) (1,080,843) Special and nonrecurring items 2,617 0 0 Operating income $701,556 $788,698 $712,700 Interest expense (63,685) (62,398) (63,927) Other income 7,308 10,080 11,529 Gain on sale of investments 0 9,117 0 Income before income taxes $645,179 $745,497 $660,302 Provision for income taxes (254,000) (290,000) (257,000) Net income $391,179 $455,497 $403,302 Steele Inc. Consolidated Balance Sheets (in thousands) ASSETS Dec. 31, 2019 Dec. 31, 2018 Current assets: Cash and equivalents $320,558 $41,235 Accounts receivable 1,056,911 837,377 Inventories 733,700…arrow_forwardWaterway Corporation reported the following for 2025: net sales $1,227,300, cost of goods sold $734,700, selling and administrative expenses $332,700, and an unreallized holding gain on available-for-sale debt securities $16,800. Prepare a statement of comprehensive income using the one statement format. (Ignore income taxes and earnings per share) WATERWAY CORPORATION Statement of Comprehensive Income MA Sarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT