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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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The answer to this question is FALSE. Corporate blogs are not easy to maintain because in making business blogs time is always needed especially in having a schedule in posting frequently in the blog. Corporate blogs can be external or internal blogs. External blogs are blogs that are available in the public to see and interact while Internal blogs are blogs within the company organization use only. 

3 0
3 years ago
Jeff recently drove to visit his parents who live 160 miles away. on his way there his average speed was 9 miles per hour faster
olya-2409 [2.1K]
To answer this item, we let x be Jeff's speed when going back home. With this representation, the speed from home to his parents is x + 9. The total time it took him for the trip is 8 hours. The time of each trip can be calculated by dividing the distance by time. Such concept is presented below.
 
                             8 hours = 160/x + 160/(x + 9)

The value of x from the equation is 36. Thus, his speeds were 36 miles/h and 45 miles/h. 
4 0
3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Contact [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
2 years ago
Splendid Occasions received $2,970 for services to be performed for the next 8 months on March 31 and recorded this transaction
Kay [80]

Answer:

If Splendid Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year?

Ans: $2,970

The ''other method'' in question is the Cash method which recognizes revenue when cash is paid unlike the Accrual method that recognizes it when earned.

Using the Cash method the Service Revenue would be $2,970 because the cash has been received for it.

If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May?

= Cash revenues - Cash expense

=  Received cash for meals served to customers - Prepaid rent for three months - Received and paid electricity bill

= 2,530 - 2400 - 60

= $70

If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May?

= Revenue - Expense

= Served a banquet on account + Received cash for meals served to customers - Rent - Electricity - Accrued salary expense - depreciation

= 2,810 + 2,530 - (2,400/3) - 60 - 2,670 - 380

= $1,430

<em>Cash spent on Equipment is not expense but capital expenditure. </em>

4 0
2 years ago
In 2016, Carow sold 3,000 units, at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same
photoshop1234 [79]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

In 2016, Carow sold 3,000 units, at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000.

The same selling price is expected for 2017. Carow is tentatively planning to invest in equipment, that would increase fixed costs by 20% while decreasing variable costs per unit by 20%.

First, we need to calculate the ner fixed and variable costs:

Fixed costs= 500,000*1.20= $600,000

Variable costs= 250*0.8= $200

Now, we can calculate the break-even point:

Break-even point= fixed costs/ contribution margin

Break-even point= 600,000 / (500 - 200)= 2,000 units

5 0
3 years ago
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