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sertanlavr [38]
3 years ago
6

Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $906,000 and cost of go

ods sold of $679,500. For this same period, Bottom has sales of $319,000 and cost of goods sold of $207,350. During the current year, Bottom sold merchandise to Top for $138,000. The parent still possesses 35 percent of this inventory at the current year-end. Bottom had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
Business
1 answer:
timama [110]3 years ago
4 0

Answer and Explanation:

The computation of the consolidated sales and cost of goods sold is shown below:

For consolidated sales

= Top reported sales + bottom reported sales  + inter entity sales

= $906,000 + $319,000 - $138,000

= $1,087,000

And the cost of goods sold is

= Top reported cost of goods sold + bottom reported cost of goods sold - intra entity sales + ending gross profit unrealized

= $679,500 + $207,350 - $138,000 + $16,095

= $764,945

The ending gross profit unrealized is come from

= {1 - ($207,350 ÷ $319,000) × $138,000} × 35%

= $16,095

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Answer:

Referral

Explanation:

Referral is the term which is described as the act or way of telling someone  or a person regarding the positive features or attribute of the business or the person, who is being referred by the person.

For example, referral is telling someone or person that the certain business or the person having a good product or the service, and then that person visit the place.

Under this scenario, Tom referred Tudor to contact them regarding the new game. So, it is an example which the Judy uses referral method or way with Tudor.

6 0
3 years ago
A company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter ov
WARRIOR [948]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

A company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year.

They have, and desire, a 25% ending inventory of finished goods.

Production required for the third quarter:

Sales= 200,000 + 40,000= 240,000

Ending inventory desired= 260,000*0.25= 65,000

Beginning inventory= (240,000*0.25)= (60,000)

Total= 245,000

7 0
3 years ago
Which two things do CRM methods accomplish?
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Answer:

I think it's make decisions

Explanation:

"CRM is a set of methods that companies use to <em>understand </em>customers. These methods <em>make decisions</em> regarding the selected customer segments"

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3 years ago
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Keith_Richards [23]

Answer:

Marketing and distribution of a variety of products

Explanation:

Marketing refers to a business function whereby a marketer advertises and promotes goods and services with an objective to increase sales and at the same time ensure customer satisfaction.  Marketing mix refers to essential marketing components for effective marketing.

Marketing mix comprises of product, place, price and promotion.

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In the given case, Starbucks, the renowned coffee maker, has formed alliances or collaborations so as to extend and strengthen their business. These strategic alliances help Starbucks create an effective distribution network and wide-reach marketing which subsequently helps in efficient operations and profitability.

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3 years ago
A problem that the Fed faces when it attempts to control the money supply is that a. since the U.S. has a fractional-reserve ban
NeTakaya

Answer:

A) since the U.S. has a fractional-reserve banking system, the amount of money in the economy depends in part on the behavior of depositors and bankers.

Explanation:

Since US banks operate under a fractional reserve banking system, they have the capacity to create money through the money multiplier, e.g. you deposit $1,000 in bank A, then bank A borrows $850 to Steven and he purchases a new bike from Sarah. Then Sarah deposits the money in bank B, and bank B borrows $722 to George who buys a laptop from Henry. Henry then deposits the money in bank C, and bank C borrows $614 to Susan, and this goes on and on.

The problem that the Fed faces is that in order for the fractional reserve system to work, households must hold their money in banks. Ans that is something that the government cannot control, specially the amount or portion that is deposited. The other players are banks, that ideally should borrow all the money that they are allowed to.

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