Fundamentals of Advanced Accounting
6th Edition
ISBN: 9780077862237
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 5, Problem 3Q
To determine
Determine the amount of intra-entity profit which remains in Company S’s inventory at year-end.
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JoeBlow Co. had revenue and expenses from ongoing business operations for the current year of $1,000,000 and $700,000, respectively. During the year the company sold a money losing division that had revenues and expenses of $100,000 and $200,000, respectively (these amounts are NOT included in the regular ongoing business revenues and expenses shown above). The division was sold at a small profit of $30,000. Assume all items are subject to a tax rate of 30%. Prepare an income statement for JoeBlow Co. for the current year.
Ceradyne Mills is a division of lowa Woolen Products. For the most recent year, Ceradyne had net income of $20,400,000. Included in
income was interest expense of $1,148,000. The operation's tax rate is 15 percent. Total assets of Ceradyne Mills are $192,700,000,
current liabilities are $42,640,000, and $29,520,000 of the current liabilities are noninterest bearing.
Calculate NOPAT, invested capital, and ROI for Ceradyne Mills. (Round ROI to 2 decimal places, e.g. 5.25%.)
NOPAT
tA
Invested capital $
ROI
%
In Problem 5-5 if the numbers where changed to this.
Top Company holds 90 percent of Bottom Company’s common stock. In the current year, Top reports sales of $820,000 and cost of goods sold of $615,000. For this same period, Bottom has sales of $320,000 and cost of goods sold of $192,000. During the current year, Top sold merchandise to Bottom for $120,000. The subsidiary still possesses 40 percent of this inventory at the current year-end. Top had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold?
Chapter 5 Solutions
Fundamentals of Advanced Accounting
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Use the same information as in problem (5) except...Ch. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - What is the consolidated total for inventory at...Ch. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 1DYSCh. 5 - Prob. 2DYS
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- A subsidiary sells merchandise to its parent at a markup of 25% on cost. In the current year, the parent had $75,000 in merchandise purchased from the subsidiary in its beginning inventory. During the current year, the parent paid $750,000 for merchandise from the subsidiary. By year-end, the parent has sold $700,000 of merchandise purchased from the subsidiary to outside customers for $900,000.What is consolidated cost of goods sold for the year? Select one: A. $ 560,000 B. $1,300,000 C. $ 900,000 D. $ 750,000arrow_forwardJacobs sold products to customers for 100 thousand. Total cost was 60 thousand. What is the most likely net change in Jacobs total asset related to this transaction?arrow_forwardMEXICO Company and all its divisions are engaged in a merchandising business. The 2021 income statement of MEXICO showed the following: Sales to unaffiliated customers P 20,000,000 Gain on sale of machinery 1,500,000 Operating expenses 15.000.000) Net income P 6,500,000 In the process of determining the consolidated net income, intersegment sales of P3,000,000 were eliminated. What is the minimum amount of segment revenue to be reported by a division in order for it to be considered as a reportable segment under IFRS 8, Operating Segments?arrow_forward
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