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Kruka [31]
3 years ago
9

The following are several figures reported for Allister and Barone as of December 31, 2018.

Business
2 answers:
IrinaVladis [17]3 years ago
3 0

Answer:

1) INVENTORY =  $540,000 +$340,000 - (188000*0.15*40.30%/140.30%)

                        = $880,000- $1800 = $878200

2 Sales =$1,080,000 + $880,000 -$188,000= $1,772,000

3) Cost of goods sold =540000+440000-188000+1800 =$793800

4) Operating expenses = 250000+320000+ 12800 = $582,800

5) Net income attributable to NCI = $10,540

Explanation:

In the closing there is an unrealised profit of(188000*15%) = $28200 * 40.30%/140.30% =$8100

to get the mark up of 40.30% We take [(188000-134000)/134000]*100

Amortisation = 64000/5 =12800

5) Calculations

Non Controlling Interest( NCI) has an attributable profit only from the profits made by the subsidiary (Barone) therefore we need to calculate the profit of Barone separately as NCI is the remaining 10% in Barone

(880000-440000-320000-12800) = $107,200-1800 = $105400*0.1= $10540

saul85 [17]3 years ago
3 0

Answer:

Inventory                     871,900‬

Sales                         1,772,000

COGS                           800,100‬

Operating expenses  582,800

NCI                                    9,910‬

Explanation:

As there inventory is sold upstream we deduct the unsold amount

<u>Inventory:</u>

540,000 + 340,000 = 880,000

134,000 x 15% =  20,100 historic cost

188,000 x 15% = 28,200 value of the inventory in the parent company

we eliminate the gross profit against inventory

28,200 - 20,100 = 8,100

880,000 - 8,100 = 871.900‬

<u>Sales</u>

1,080,000 + 880,000 = 1.960.000‬

we deduct the 188,000 intra-entity sale from subsidiary to parent

the portion sold to third parties is given in the parent sales figure so we eliminate this to abvoid counting the same good twice:

1,960,000 - 188,000 = 1,772,000

<u>The COGS</u> should be for the subsidiary amount only

540,000  +  440,000 = 980,000

we subtract the 188,000 x 85% COGS of the parent when selling the goods of the subsidiary: 159,800

And from the subsidiary there is also a 15% of their COGS which should be elimanate as it didn't ended in a non-affiliate (is in the parent inventory)

134,000 x 15% = 20,100

COGS 980,000 - 159,800 - 20,100 = 800.100‬

Operating expenses 250,000 320,000  = 570,000

we also add up the amortization of Barone intangible asset

64,000 / 5 = 12,800

total expenses 582,800

<u>Non controlling income:</u> (10% of Barone)

We calculate the subsidiary income

880,000  - 440,000 - 332,800 =  107,200 we calculate 10% of this:

10,720

Then, we subtract the percentage of their income in the non-realized gain (sale to parent company)

8,100 x 10% = 810

Non controlling income 10,720 - 810 = 9.910‬

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Answer:

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By writing an interesting posting, the new visitors could be attracted which reflects a good sign for the company.  

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The 2021 income statement of Adrian Express reports sales of $20,710,000, cost of goods sold of $12,600,000, and net income of $
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Answer:

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1. Five Profitability Ratios:

Gross profit ratio: = 39.2%

Return on assets = 20%

Profit margin = 9.6%

Asset turnover = 2.1 times

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Explanation:

a) Data and Calculations:

Sales Revenue        $20,710,000

Cost of goods sold $12,600,000

Gross profit                $8,110,000

Net income               $1,980,000

ADRIAN EXPRESS

Balance Sheets

December 31, 2021 and 2020

                                                                          2021                  2020

Assets

Current assets:

Cash                                                              $840,000            $930,000

Accounts receivable                                     1,775,000            1,205,000

Inventory                                                      2,245,000            1,675,000

Current assets                                          $4,860,000          $3,810,000

Long-term assets                                        5,040,000            4,410,000

Total assets                                             $ 9,900,000         $8,220,000

Liabilities and Stockholders' Equity

Current liabilities                                     $ 2,074,000          $1,844,000

Long-term liabilities                                   2,526,000           2,584,000

Common stock                                          2,075,000           2,005,000

Retained earnings                                    3,225,000             1,787,000

Total Equity                                               5,300,000           3,792,000

Total liabilities & stockholders' equity   $9,900,000         $8,220,000

Industry averages for the following profitability ratios are as follows:

Gross profit ratio 45 %

Return on assets 25 %

Profit margin 15 %

Asset turnover 8.5 times

Return on equity 35 %

Gross profit ratio: = Gross profit/Sales * 100

= $8,110,000/$20,710,000 * 100

= 39.2%

Return on assets = Net income/Assets * 100

= $1,980,000/$9,900,000 * 100

= 20%

Profit margin = Net Income/Sales * 100

= $1,980,000/$20,710,000 * 100

= 9.6%

Asset turnover = Sales/Total Assets

= $20,710,000/$9,900,000 = 2.1 times

Return on equity = Net Income/Total Equity * 100

= $1,980,000/$5,300,000 * 100

= 37.4%

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