P CO owns a 90% interest in S Co, purchased at a time when the book values of S recorded assets and Iliabilities were equal to fair values. During 2014, P sold merchandise to S cost 40,000 for $32,000. At December 31, 2014, 75% of this merchandise sold to third party. Separate incomes for P&S are summarized as follows: Sales $900,000 $200,000 Cost of sales 400,000 100,000 Gross profit 500,000 100,000 Operating expenses 200,000 80,000 Separate income amount of income from s reported in P income statement ? $300,000 $ 20,000 What is Select one: a. 19,800 b. 18,000 c. 20,000 d. 16,200

The following information of La Vie Limited and its competitor Mikie Limited is given below: Income Statements for the year ended 31 December 2023 La Vie Limited Mikie Limited $000 80,000 (40,000) Sales Cost of goods sold Gross profit Less: Operating expenses Net Profit $000 100,000 (55,000) 45,000 (18,000) 27,000 Closing Inventory Trade receivables Cash Extract of the assets of both the companies are provided as at 31 December 2023 40,000 (12,000) 28,000 La Vie Limited Mikie Limited $000 $000 19,000 6,000 8,920 3,280 i. Gross Profit Margin. ii. Net Profit Margin. iii. Inventory Turnover Period. iv. Trade Receivables Collection Period. Required: a. Calculate the following ratios for both the companies: 4,300 1,015 b. From the results of the ratios calculated in part (a) comment on the overall efficiency of the La Vie Limited and its competitor Mikie Limited.

In 2020, parent reports Cost of Goods Sold of $4,000,000.  Its 90% owned subsidiary reports Cost of Goods Sold of $1,000,000 in 2020.  During 2019 the subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. By the end of 2020, all inventory subject to the intercompany transfer has been sold to third parties. In 2020, the subsidiary had sold $200,000 of goods to its parent and had $30,000 of unrealized gains. How much is consolidated cost of goods sold in 2020.

The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains   $23,800 Other expenses and losses   4,000 Cost of goods sold   292,000 Sales discounts   4,600 Sales revenue   760,000 Operating expenses   221,000 Sales returns and allowances   10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.