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disa [49]
2 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]2 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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Answer:

28,000

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Energizer sells 16,000 => Supply Energizer = 16,000

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Which of the following should employers do to actively prevent workplace hazards? A. Completely eliminate all possible hazards.
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4 0
3 years ago
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College football​ attendance, especially student​ attendance, has been on the decline. In​ 2016, home attendance at major colleg
puteri [66]

Answer:

Your opportunity cost of attending a game compared with the opportunity cost facing a college student 10 years ago is:

A) higher, because more games are televised today.

Opportunity costs are the cost of choosing one alternative from another.

In this case, when college students attend college football games they are unable to do other activities, not only while they are at the stadium or going to the stadium, but they are not able to purchase other goods. The cost of those alternatives that are lost are higher now because many college football games are televised now, before if you wanted to see a game you had to go to the game. So a student is now able to watch the game while doing other activities, or saving money for buying something else.

Can this change in opportunity cost account for the decline in college football​ attendance?

B) ​Yes, because these changes increase the opportunity cost of watching football games in person.

Even though opportunity costs do not involve actual cash payments, they are still important and individuals do consider them when they are choose one option over another. E.g. imagine if you had to choose between spending a considerable amount of money by attending a game (ticket, gas, beverages, etc.) or watching that game on TV and buying a few clothes instead or going on a date, etc. What option would you choose?

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3 years ago
Troy Enterprises uses a continuous review inventory control system. The firm operates 50 weeks per year, with an annual demand o
timurjin [86]

Answer:

Safety Stock is 336.62 units

Explanation:

As per given data

Demand = D = 50,000

Ordering Cost = S = $35

Holding Cost = H = $1 per unit per year

Weekly Demand = Demand / 50 weeks = 50,000 / 50 = 1,000 units per week

Weekly Demand during Lead time of 3 weeks = 1000 x 3 = 3,000 units

Standard Deviation = 216.51 units

Desired Service level = 94%

The Z score at 94% service level is 1.55477  

Safety Stock = Zscore x standard deviation = 1.55477 x 216.51

Safety Stock = 336.62

8 0
3 years ago
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