Answered: find: upstream unrealized gross profit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S equity at acquesition consist of 300000 common stock and 100000 retained earning inventory understated 20000 of which 80% sold in y1 and15% sold in y2 note payable overstated 9000 and 3 years to maturity note receivable overstated 6000 and 24 months remaining to mature S net income for year 1 was 60000 and S net income for year 2 was 70000 S dividends in year 1 = 15000 in year 2 = 1500 sales from P to S year 1 of product A 1000 at $18 cost of those to P was $14 and S sold to external at $22 in year 1 S sold 600 and in year 2 S sold 400 sales from S to P year 1 of product B 900 at $17 these cost S $15 and P sold to external at $20 in in Year 1 P sold 700 and in year 2 150 sales from P to S year 2 product C 500 at $20 these cost P $17 and S sold 150 units to external at $25 sales from S to P year 2 product D 400 at $18 these cost S $12 and P sold 150 units to external at $20 i will provide you with these info, i want answers for second year and P percentage of S is 66% find: upstream unrealized gross profit become realized downstream unrealized gross profit become realized upstream realized gross profit become unrealized downstream realized gross profit become unrealized upstream unrealized gross profit still unrealized downstream unrealized gross profit still unrealized adjusted net income of S before gross profit adjustments adjusted net income of S after upstream gross profit adjustments adjusted net income of S before upstream gross profit adjustments unamortized differences beginning of year unamortized differences ending of year NCI share income from S changes of investment in s changes in NCI NCI share IN consolidated income statement income from S in consolidated income statement investment in S in the books of P beginning of the year investment in S in the books of P ending of the year NCI in consolidated balance sheet

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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