Nicolo manufacturing produced 10,000 Kitchen clocks in 2021 for P50 each and sold them to San Mig Corp at P150 each. San Mig resoled 8,000 units at P220 each in 2021 and held the remaining units in inventory on December 31, 2021. San Mig owns 70% of the stocks of Nicolo Manufacturing. How much gross profit must be included in the consolidated income statement for 2021?

Nicolo manufacturing produced 10,000 Kitchen clocks in 2021 for P50 each and sold them to San Mig Corp at P150 each. San Mig resoled 8,000 units at P220 each in 2021 and held the remaining units in inventory on December 31, 2021. San Mig owns 70% of the stocks of Nicolo Manufacturing. How much gross profit must be included in the consolidated income statement for 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During 2021 Carla Vista Company purchased 10700 shares of Kingbird Inc. for $37 per share. During the year Carla Vista Company sold 2850 shares of Kingbird, Inc. for $42 per share. At December 31, 2021 the market price of Kingbird, Inc.’s stock was $35 per share. What is the total amount of gain/(loss) that Carla Vista Company will report in its income statement for the year ended December 31, 2021 related to its investment in Kingbird, Inc. stock? $-7150 $-1450 $-21400 $14250
During 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250
Tala Co. owns an 80% interest in Kilometro Inc., acquired several years ago. Kilometro regularly sells merchandise to its parent at 125% of its cost. Gross profit data of Tala and Kilometro for the year 2018 are: Sales Tala- 2,500,000 Kilometro- 1,800,000 Cost of Sales Tala 1,800,000 Kilometro- 1,240,000 During 2018, Tala purchased inventory items from Kilometro at a transfer price of 400,000. Tala December 31, 2017 and 2018 inventories were 500,000 and 600,000 respectively, which included goods acquired from Kilometro of 125,000 and 100,000 respectively. The inventory of Kilometro at the beginning and end of 2018 were 350,000 and 400,000 respectively. As of December 31, 2018, 60% of the year's shipment is not yet paid by Tala. 1. What is the consolidated cost of sales? 2. What amount of Inventory is reported in the consolidated balance sheet at December 31, 2018?
Taballa Ltd owns all the share capital of Amaroo Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2023 or 30 June 2024. (a) On 1 May 2023, Amaroo Ltd sold inventories costing $600 to Taballa Ltd for $1 200 on credit. On 30 June 2023, only half of these goods had been sold by Taballa Ltd, and Taballa Ltd had paid $600 to Amaroo Ltd. All remaining inventories were sold to external entities by 30 June 2024 and Taballa Ltd paid the outstanding amount to Amaroo Ltd on 5 May 2024. (b) On 1 January 2023, Taballa Ltd sold an item of plant to Amaroo Ltd for $10 000. Immediately before the sale, Taballa Ltd had the item of plant on its accounts for $ 12 000. Taballa Ltd depreciated items at 5% p. a. on the diminishing balance and Amaroo Ltd used the straight-line method over 10 years. (c) An inventories item with a cost of $4 000 was sold by Taballa Ltd to Amaroo Ltd for $3 600 on 1 January 2024. Amaroo Ltd intended to use this item as…
Weisman Company, a 100% owned subsidiary of Martindale Corporation, sells inventory to Martindale at a 20% profit on selling price. The following data are available pertaining to inter-company purchases by Martindale: 4. 5. a. b. Weisman's profit numbers were $125,000, $142,000 and $265,000 for 2020, 2021, and 2022, respectively. Martindale received dividends from Weisman of $25,000 for 2020 and 2021, and $30,000 for 2022. C. d. 3. Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in the pre-consolidation Income (loss) from subsidiary account for 2021? $136,000 a. b. Inter-company sales $18,000 $19,400 $21,500 C. d. 2020: 2021: 2022: a. b. C. d. $140,800 $141,600 $142,800 Assume Weisman uses the equity method to account for its investment in Martindale. What is the balance in pre-consolidation Income (loss) from subsidiary for 2022? Unsold at year end (based on selling price) 2020: 2021: 2022: $235,000 $264,600 $265,400 $268,600…
Tala Co. owns an 80% interest in Kilometro Inc., acquired several years ago. Kilometro regularly sells merchandise to its parent at 125% of its cost. Gross profit data of Tala and Kilometro for the year 2018 are:SalesTala- 2,500,000Kilometro- 1,800,000Cost of SalesTala- 1,800,000Kilometro- 1,240,000During 2018, Tala purchased inventory items from Kilometro at a transfer price of 400,000. Tala December 31, 2017 and 2018 inventories were 500,000 and 600,000 respectively, which included goods acquired from Kilometro of 125,000 and 100,000 respectively. The inventory of Kilometro at the beginning and end of 2018 were 350,000 and 400,000 respectively. As of December 31, 2018, 60% of the year’s shipment is not yet paid by Tala.what amount of inventory is reported in the consolidated balance sheet at December 31, 2018?
Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above. 2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.
During 2020, Bramble Co. generated revenues of $102000. The company’s expenses were as follows: cost of goods sold of $41000, operating expenses of $16000 and a loss on the sale of equipment of $2700.Bramble’s gross profit is $42300. $45000. $102000. $61000.
Starr Co. had sales revenue of $540,000 in 2020. Other items recorded during the year were: Cost of goods sold $330,000 Salaries and wages expense 120,000 Income tax expense 25,000 Increase in value of company reputation 15,000 Other operating expenses 10,000 Unrealized gain on value of patents 20,000 Prepare a single-step income statement for Starr for 2020. Starr has 100,000 shares of stock outstanding.
At the end of 2020, the Light Bulb Company announced it had produced a gross profit of R1 million. The company has also established that over the course of this year it has incurred R345,000 in operating expenses and R125,000 in interest expenses. The company is subject to a 30% tax rate and has declared R57,000 total preferred share dividends. Determine both the Operating profit and the Net profit after tax equals for 2020.
Shaquille Corporation has operating income of $1.7 million, a loss on write-down of inventory of $200,000, and income tax expense of $425,000 for the year ended December 31, 2021, before considering the following item: a $275,000 gain, after tax, from the disposal of an operating segment. Required: Prepare the 2021 multiple step income statement for Shaquille Corporation beginning with operating income.
The following information can be found in Sanduc Merchandising Corporation's financial statement in 2019: cost of sales of 2,450,000; accumulated depreciation of 75,000; operating expenses of 1,050,000; corporate income tax of 32% sales of 4,800,000; 3-year bank loan of 1,000,000 that pays an interest rate of 8.5 per year. determine the net profit before tax of Sanduco