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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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What is total amount spent on wages and salary before any tax is being taken? [those ernings above £40000 are paying 40% income
vodka [1.7K]

Answer: hello your question is open ended hence I will give you a more general answer

answer : $12,000 * number of workers  or $24,000 * number of workers

Explanation:

Income taxes are taxes been levied directly on the  income earned by the tax payer.

According to Tax rules there is a certain amount of income an individual would have to earned before any tax will be taken, incomes below $12,000  are tax free ( for singles ) and $24,000 for married individuals ; Hence the Total amount spent on wages and salary before tax is being taken = $12,000 * number of workers or $24,000 * number of workers . ( unless otherwise stated )

3 0
3 years ago
Interior Design Group is an all equity firm that has 40,000 shares of stock outstanding. The company has decided to borrow $1 mi
AleksandrR [38]

Answer:

The total value of this firm if you ignore taxes is $16 million.

Explanation:

Considering that the company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,500 shares, hence to calculate the total value of the firm we have to first make the following calculation:

$1,000,000÷2,500= 400

Hence, Total value of the firm= 400×40,000 shares of stock outstanding

                                                 = $16 million is the total value of this firm if you ignore taxes.

3 0
2 years ago
5 reasons why hollandaise sauce might separate
Gnesinka [82]
Here is the answer: Too much oil added for amount of continuous phase (liquid)• Over-mixed• Product became too hot<span>• Not enough stabilizer in recipe</span>
8 0
3 years ago
A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,020,000,
murzikaleks [220]

Answer:

(A) $180,000 (B) A journal entry was prepared for over- or under applied overhead to cost of goods sold.

Explanation:

Solution

Now,

Let us recall from the statement from the example as follows:

A company gives an overhead at =1 60% rate

The actual overhead cost for the present period is =1020,000

Direct cost of labor = $525,000

Then,

(a) For the under applied overhead using T account we have the following:

The direct labor cost overhead  = 525,000 *  160% (allocated overhead)

=$ 840,000

Thus

The Under applied overhead becomes,

Under applied overhead =The actual overhead - applied overhead

In other words we deduct the actual overhead for applied overhead

=$1020,000 - $840,000 = $180,000

(B) A Journal entry is carried out for the close over or under applied overhead.

Date Particulars                       Debit              Credit

               Cost of goods sold A/c $180,000

               Manufacturing overheads              $180,000

5 0
3 years ago
Taggart Goods Corp. just reported a net income of $8,000,000, and its current stock price is $17.50 per share. Taggart is foreca
Whitepunk [10]

Answer:

$15.2279

Explanation:

Current P/E = Price per share * Share outstanding / Net Income

Current P/E = 17.5 * 5,500,000 / 8,000,000

Current P/E = 12.03

The Current P/E will remain the same next year

Next year P/E = Price * (New shares + Existing shares) / Next year earnings

12.03 = Price * (5,500,000 + 2,400,000) / 8,000,000 * 1.25

12.03 = Price * (7,900,000) / 10,000,000

12.03 * 10,000,000 = Price * (7,900,000)

Price = 120,300,000 / 7,900,000

Price = 15.22785

Hence, the price of shares next year will be $15.2279

5 0
3 years ago
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