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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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A project has an initial cost of $89,800, a life of 7 years, and equal annual cash inflows. The required return is 8.2 percent.

aliina [53]

8.2 percent (the answer)

5 0

3 years ago

Levine, Inc., has a total debt ratio of 0.48. What is its debt-equity ratio?

Aleks04 [339]

Answer:Debt equity ratio= 0.92

Explanation:

Debt equity ratio is a company's liquidity ratio that compares its total debt to total equity showing how the proportion of the finance of the company proceeds from its creditors and investors.

its formulae is given by

Debt equity ratio= Total liabilities /Total shareholder's equity

= Debt/ total asset - debt

let the total asset = 100% = 1

Therefore,

Debt equity ratio=Debt/ total asset - debt

= 0.48/ 1 -0.48 = 0.48 /0.52 = 0.9231

3 0

4 years ago

Time deposits, bonds, securities,

s2008m [1.1K]

Answer:

In his traditional role Finance

Manager is responsible for

Select one:

Running the business smoothly

Proper utilisation of the funds

Arranmgement of financial

resources

Efficient management of cash

Explanation:

In his traditional role Finance

Manager is responsible for

Select one:

Running the business smoothly

Proper utilisation of the funds

Arranmgement of financial

resources

Efficient management of cash

5 0

3 years ago

One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination an

ICE Princess25 [194]

Answer: The correct answer is True.

Explanation: Functional Structure is a structure where the organization groups employees according to a specialized or similar set of roles or tasks. This structure often does impede coordination and communication because of the competition between members of the group. A common characteristic of this type of group is that the members become territorial and often do not want to cooperate with other groups.

3 0

4 years ago

Planters Bank pays 5 percent simple interest on its savings account balances, whereas Centura Bank pays 5 percent compounded ann

Semmy [17]

Answer:

$7,839.57

Explanation:

Given:

Amount deposited = $12,000

Time = 20 years

Interest paid by Planters Bank = 5%

Now,

Simple interest is given as:

Interest = Principle × Rate × Time

Interest = $12,000 × 0.05 × 20

interest = $12,000

therefore

the total amount at the end of 20 years = $12,000 + $12,000 = $24,000

now for the Centura Bank

Interest rate = 5% compounded annually

The compound interest is given as:

Final amount = Principle × ( 1 + rate )ⁿ

here, n is the time period

therefore,

Final amount = $12,000 × ( 1 + 0.05 )²⁰

Final amount = $31,839.57

The difference in amount = $31,839.57 - $24,000 = $7,839.57

7 0

3 years ago