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disa [49]
3 years ago
11

Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology

resulted from the original acquisition. For 2018, the companies had the following account balances:
Akron Toledo
Sales . . . . . . .. $1,100,000 $600,000
Cost of goods sold 500,000 400,000
Operating expenses 400,000 220,000
Investment income . . Not given –0–
Dividends declared . . .80,000 30,000
Intra-entity sales of $320,000 occurred during 2017 and again in 2018. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2017, with
$50,000 unsold on December 31, 2018.
a. For consolidation purposes, does the direction of the transfers (upstream or downstream) affect
the balances to be reported here?
b. Prepare a consolidated income statement for the year ending December 31, 2018.
Business
1 answer:
const2013 [10]3 years ago
7 0

Answer:

A. Yes

B. $170,000

Explanation:

A. Yes For consolidation purposes, the direction of the transfers for either upstream or downstream does affect the balances to be reported here reason been that when calculating the noncontrolling interest balances in a situation where it is present we have to taken into consideration the deferral of unrealized gross profits on upstream sales where Downstream on the other hand are assigned to the parent in which they will be viewed as if they have no any impact on the outside interest.

B. Preparation of a consolidated income statement for the year ending December 31, 2018

AKRON, INC. AND CONSOLIDATED SUBSIDIARY

Income Statement Year Ending December 31, 2018

Sales $1,380,000

[1,100,000+(600,000-320,000)

Less Cost of goods sold ($575,000)

(500,000+50,000+15,000)

Gross profit $805,000

($1,380,000-$1,380,000)

Operating expenses 635,000

(400,000+220,000+15,000)

Consolidated net income $170,000

($805,000-635,000)

Therefore Consolidated net income will be $170,000

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If investors from Denmark increase purchases of U.S. securities, which of the following is true regarding the demand for dollars
saw5 [17]

Answer:

Increase / Increase.

Explanation:

Increase purchases of the U.S securities by the Denmark investors will place an increase on both the demand for U.S. dollar and international value of U.S. dollar since the business is done with the U.S dollar.

3 0
3 years ago
Can you use a Go Pro at sea world with a chest mount
stira [4]
You can use a GoPro<span> at Disney as long as it isn't on a selfie stick/gopole. If </span>you<span> have it on a </span>chest mount<span>, head mount, wrist or hand mount it is ok.</span>
8 0
3 years ago
14) If the investor wants to have a portfolio with a 16% expected return, the minimum standard deviation he can achieve is a) 40
stellarik [79]

The main aim in which any investor puts his capital into a business is to:

  • Make profit.

<h3>What is an Investment?</h3>

This refers to the value which is given to a certain venture or business in order to yield profit after a period of time.

With this in mind, we can see that several parameters are missing from the question, but expected returns are measures of probability that are used to calculate profit and ROI.

Please note that your question is incomplete so I gave you a general overview to help you get a better understanding of the concept.

Read more about investing here:
brainly.com/question/25572872

8 0
2 years ago
Sixty-second Avenue Inc. expects to earn $5,700,000 this year. The company currently has 790,000 shares outstanding, and the sha
11111nata11111 [884]

Answer:

The company's expected market price per share After the repurchase would $23.68

Explanation:

In order to calculate the company's expected market price per share After the repurchase we would have to calculate first the Price-to-earnings ratio ( P/E ratio ) as follows:

Price-to-earnings ratio ( P/E ratio )= Market price per share / Earnings per share

Earnings per share = Earnings/ number of shares outstanding =$ 5,700,000 / $790,000 = $ 7.21

Therefore, Price -to-earnings ratio = $ 21 / $ 7.21 = 2.91

If 90,000 shares are repurchased, Therefore Earnings per share =$ 5,700,000 / $700,000 = $ 8.14

Therefore, the company's expected market price per share After the repurchase=$ 8.14 x 2.91 = $23.68

7 0
3 years ago
Compute the standard cost for one hat, based on the following standards for each hat: Standard Material Quantity: 3/4 yard of fa
Paha777 [63]

Answer:

The standard cost for one hat is $ 11.65

Explanation:

The standard cost of a hat is determined after consider all the manufacturing costs components in it. Based on the data available, it is calculated as under:

Standard Material  3/4 yards @ $ 4 per yard                               $ 3.00

Standard Labor      1 hour at $ 5.75 per hour                               $ 5.75

Factory overhead   $ 2.90 per direct labor hour                         <u>$ 2.90</u>

Standard cost for one hat                                                           <u>$ 11.65</u>

The factory overhead has been considered at one hour, which is the direct labor hour in the standard calculation.

6 0
3 years ago
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