1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marizza181 [45]
3 years ago
12

Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's

cost of goods sold totals $400,000. During the year, Tulip sold inventory costing $60,000 to Daisy for $100,000. By the end of the year, all transferred inventory was sold to third parties. What amount should be reported as cost of goods sold in the consolidated statement of income?
Business
1 answer:
dsp733 years ago
6 0

Answer:

Amount to be reported as cost of goods sold in the consolidated financial statement = $900,000

Explanation:

When a company holds 100% shares or more than 50% shares of another company that is common stock, they establish a holding subsidiary relationship in which equity method is to be followed.

As per equity method all the cost of goods sold by that of subsidiary is to be added to financial statements of holding while making consolidated financial statements.

In this if there are any sales or purchase between holding and subsidiary then such profit is not be added up till that inventory is further sold to third party.

In case the inventory is sold to third party then entire profit that is inclusive of holding to subsidiary is to be included as part of consolidated financial statements.

Therefore in the above case since Daisy has sold the inventory purchased from Tulip, entire cost of goods sold shall form part of consolidated financial statements.

Here amount to be reported as cost of goods sold in the consolidated financial statement = $600,000 + $400,000 = $1,000,000

Further the cost of goods sold is included 2 times, first in Tulip's account for $60,000 and then the same in Daisy's account for $100,000. In consolidated statement double amount should not be added, thus net cost of goods sold = $1,000,000 - $100,000 = $900,000

You might be interested in
A key factor in evaluating the target market's attractiveness is the market's desire for alternative/natural solutions because t
Rudik [331]

Answer:

Athletes

Explanation:

As athletes are more physically active and capable and because of their increasing workouts, they tend to have good stamina.

Athletes are health conscious and prefer to go for organic products, rather then chemical intensive products, as on the long run, organic products do not harm the body in any manner, that the chemical products might do.

Turmeric is best known for its natural purifying effects.

As a company targeting athletes would be very beneficial as the customers like them, will get attracted easily towards these products.

8 0
3 years ago
A manuscript is sent to a typing firm consisting of typists A, B and C. If it is typed by A, then the number of errors made is a
spin [16.1K]

Answer:

(a) E(X) = 3

(b) Var(X) = 12.1067

Explanation:

(a) E[X]

E[X]T = E[X]T=A + E[X]T=B + E[X]T=C

         = (2.6 + 3 + 3.4)/3

         = 2.6 (1/3) + 3(1/3) + 3.4(1/3)

         = 2.6/3 + 1 + 3.4/3

         = 3

(b) Var (X) = E[X²]−(E[X])²

Recall that if Y ∼ Pois(λ), then E[Y 2] = λ+λ2. This implies that

E[X²] = [(2.6 + 2.6²) + (3 + 3²) + (3.4 + 3.4²)]/3

         = (9.36 + 12 + 14.96)/3

         = 36.32/3

         = 12.1067

Var(X) = E[X²]−(E[X])²

          = 12 - 3²

          = 12.1067 - 9

          = 3.1067

8 0
3 years ago
30) The theme dominating global financial markets today is the complexity of risks associated with financial globalization. List
ZanzabumX [31]

Answer and Explanation:

The following are the examples:

1. Effect on the big deficit or the public debt crisis: It involves the present eurozone crisis, in this the rate of interest and the exchange rate would be effected

2. The monetary system i.e. international would be under scrutiny. As if there is an increase in the renminbi of chinese so the outlook of the would be varied on the currencies i.e. reserved, currency exchange, etc

3. Many of the countries would continue the balance of payment that represent the country would import more goods, services as compared with the exports that would become dangereous

4. The ownership, the framework of the government would be varied over the globe

6 0
2 years ago
During its first year of operations, Silverman Company paid $15,085 for direct materials and $10,200 for production workers' wag
elena-s [515]

Answer:

$4,550

Explanation:

First, we need to calculate the product cost per unit

Product cost per unit = Total production costs / Units produced

= ($15,085 + $10,200 + $9,200) / 6,050 units

= $5.7 per unit

Cost of goods sold = $5.7 × 3,700 units

= $21,090

Net income = Sales - Cost of goods sold - Operating expenses

= ($8.2 × 3,700) - $21,090 - $4,700

= $30,340 - $21,090 - $4,700

= $4,550

6 0
2 years ago
______ segmentation delves into how consumers actually describe themselves
andrezito [222]
Psychographic, <span>Segmentation is a method that delves into how consumers actually describe themselves, their attitudes, interests and activities.</span>
3 0
3 years ago
Other questions:
  • Karina wants to retire early and spend her retirement in a foreign country. What are the most helpful examples of milestones for
    7·2 answers
  • The coordinating conjunctions that can be used to combine two complete sentences with a comma are âfor, and, nor, but, or, yet,
    5·1 answer
  • One thirds of the checking accounts at the community bank earns interest. If 2,500 accounts are of this type, how many total acc
    5·1 answer
  • Investors in middle management are most likely to be investing because they're
    9·2 answers
  • When a producer offers a prospective insured a portable dishwasher as a bonus for purchasing a policy, he/she could be guilty of
    14·1 answer
  • Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. Howev
    14·1 answer
  • Choose the correct statement regarding rental insurance
    9·1 answer
  • Alicia loses her job part way through 2019. Her employer pays her wages of $15,450 up through her date of termination. After tha
    9·1 answer
  • Which best describes the relationship between total utility and marginal utility?.
    15·1 answer
  • Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technol
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!