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3 years ago

Preparing a consolidated income statement - with noncontrolling interest, but AAP or intercompany profits

Business

1 answer:

mrs_skeptik [129]3 years ago

8 0

Answer:

Consol. Income Parent Subsidiary Elimination entries Consolidated

statement Dr Cr

Sales 6000000 900000 6900000

COGS -4200000 -540000 -4740000

Gross profit 1800000 360000 2160000

Income (loss) 88200 0 88200 0

from subsidiary

Operating -1140000 -234000 -1374000

expense

Net income 748200 126000 88200 786000

Net income attributable to 37800 37800

non-controlling interests*

Net income attributable to Parent 748200

Workings:

Net income attributable to non-controlling interests = 126000*30% = 37800

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Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Ea

Eva8 [605]

Answer:

a. 90,000 classic lamps; 0 fancy lamps

Explanation:

To determine the optimise total contribution, we need to calculate the contribution margin per hour of machine time for both the lamps. Then the result of whichever is higher would be produced.

Moreover, as there is no limitation on how many lamps can be produced, therefore, we would assume that we can make as many as we want up to the limit of machine-hours available. The calculation is done as follows:

Contribution margin per hour of machine time for classic lamp = Contribution/machine hours to build one classic lamp

Contribution margin per hour of machine time for classic lamp = 13 / 0.2

Contribution margin per hour of machine time for classic lamp = 65

Contribution margin per hour of machine time for fancy lamp = Contribution/machine hours to build one fancy lamp

Contribution margin per hour of machine time for fancy lamp = 21 / 0.5

Contribution margin per hour of machine time for fancy lamp = 42

Since classic lamp has the higher contribution margin per hour. Therefore, all the machine hours would be used to make classic lamps.

= 18,000 / 0.2

= 90,000

Hence, 90,000 classic lamps would be sold while no fancy lamps will be sold to optimise total contribution (which would be 65 x 18,000 = $1,170,000).

7 0

3 years ago

You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $ 5 com

kumpel [21]

Answer:

5.34 months

Explanation:

Pay back period calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.

Payback period = amount invested / cash flows

$5000 / $ 935 = 5.34 months

I hope my answer helps you

7 0

3 years ago

Park Co is considering an investment that requires immediate payment of $28.245 and provides expected cash inflows of 59,300 ann

statuscvo [17]

Answer:

The net present value of this investment is $3,256.06.

Explanation:

Note: There two errors in the figures provided in this question. They are they therefore fixed before answering this question as follows:

Park Co is considering an investment that requires immediate payment of $28,245 and provides expected cash inflows of $9,300 annually for four years. Assume Park Co requires a 7% return on its investments.

What is the net present value of this investment?

The explanation of the answer is now provided as follows:

The present value (PV) of the annual expected cash inflows of $9,300 can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV of the annual expected cash inflows = Annual expected cash inflows * ((1 - (1 / (1 + rate of returns))^number of years) / rate of returns) = $9,300 * ((1 - (1 / (1 + 0.07))^4) / 0.07) = $31,501.06

Net present value = PV of the annual expected cash inflows – Required immediate payment for the investment = $31,501.06 - $28,245 = $3,256.06

Therefore, the net present value of this investment is $3,256.06.

6 0

3 years ago

A firm will work with a customer to design the product, and then make it from purchased materials, parts, and components. this f

drek231 [11]

A firm will work with a customer to design the product, and then make it from purchased materials, parts, and components. this firm is called a make order firm.

A firm is a for-profit business, generally formed as a partnership that provides professional services, along with criminal or accounting offerings. The theory of the firm posits that firms exist to maximize profits. The term firm is synonymous with enterprise or organization. firms can operate beneath several distinct structures, including sole proprietorships and corporations.

In income, commerce, and economics, a customer is a recipient of a good, service, product, or idea - obtained from a seller, vendor, or supplier via a monetary transaction or change for money or some other valuable consideration.

learn more about the organization here brainly.com/question/19334871

#SPJ4

8 0

2 years ago

The following is a trial balance of Barnhart Company as December 31, Year 1: Account Title: Debit Credit Cash 12,500 Accounts Re

Tanzania [10]

Answer:

The total amount of assets is 15,750.

Explanation:

Reproducing the trial balance below for clarity:

Account Title Debit Credit

Cash 12,500

Accounts Receivable 3,250

Accounts Payable 2,800

Common Stock 6,600

Retained Earnings 4,500

Service Revenue 7,450

Operating Expenses 5,100

Dividends 500

Total 21,350 21,350

Calculation of Total Assets:

Total assets = Cash + Accounts Receivable

= 12,500 + 3,250

= 15,750

Note that among the given accounts, accounts cash and accounts receivable are assets; accounts payable is a liability; common stock and retained earnings are part of the capital; service revenue is a form of revenue; while operating expenses and dividends are expenses.

7 0

3 years ago