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
