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faltersainse [42]
3 years ago
9

Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of

goods sold of $7,500,000. For the same period, Shannon has sales of $200,000 and cost of goods sold of $160,000. During the year, Patti sold merchandise to Shannon for $60,000 at a price based on the normal markup. At the end of the year, Shannon still possesses 30 percent of this inventory. Assume the same information, except Shannon sold inventory to Patti.
Compute consolidated sales.
Business
1 answer:
Elden [556K]3 years ago
8 0

Answer:

$10,140,000

Explanation:

To make consolidated statements company needs to consolidate the financial data of its own and its subsidiary.

Revenue can be consolidated of parent and subsidiary as follow:

First

Add revenue of both companies

Total Sales = Patti Company sales + Shannon Inc. sales

Total Sales = $10,000,000 + $200,000 = $10,200,000

Now deduct the sale made to each other because sales mad within the group is not recorded for consolidation purposes and it is not a sale for a group it is an internal group transfer.

Consolidated Sales = Total sales - Internal Sales

Consolidated Sales = $10,200,000 - $60,000 = $10,140,000

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Answer:

Guaranteed residual value, Unguaranteed residual value and Rental payments.

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Executory cost refers to the cost of normal expenses associated with owning a leased asset, including insurance, maintenance, and taxes.

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simmons company issued four-year bonds with a par value of $1,000,000. the bonds have a 4% coupon rate and interest is payable s
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7 0
9 months ago
As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo
icang [17]

Answer:

The answer is C.

Explanation:

As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.

As price level falls, value of money decreases because a unit of money will more of goods or services.

During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.

With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.

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3 years ago
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm
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Answer:

The correct answer is $23,430.

Explanation:

According to the scenario, the given data are as follows:

Total actual revenue = $1,700,000

Irvine Center actual revenue = $561,000

Advertising cost = $71,000

So we can calculate the amount of advertising that would be allocated to the Irvine center by using following formula:

Advertising Cost allocated = (Irvine Center actual revenue × Advertising cost)   ÷ Total actual revenue

By putting the value, we get

= ($561,000 × $71,000)  ÷ ( $1,700,000)

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3 0
3 years ago
Please help!!! due tmrw!!!
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Yeah the game company would lower the price of the game.
8 0
2 years ago
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