Prego owns 100% of Spacci. Below you will find the financial statements of both firms. Find consolidated interest expense. Prego 1 Sales Purchases from Subsidiary Other COGS Gross Profit SG&A Tax Net Income Operating Profit Interest Expense Interest Income from Subsidiary Earnings before tax Spacci Profit & Loss 4 COGS Gross Profit SG&A Sales to Parent Sales to nonrelated parties Total Sales Tax Net Income Profit & Loss Operating Profit Interest Expense for Loan from Parent Interest Expense for Bank Loans Earnings before tax 7,500 (3,750) (2,250) 1,500 (750) 750 (75) 38 713 (150) 563 3,750 2,250 6,000 (4.500) 1,500 (750) 750 (38) (1) 711 (20) 691 Cash Account Receivable from nonrelated parties Inventory Total current assets Net PP&E Loan to Subsidiary Investment in Subsidiary Total Assets Cash Account Receivable from Parent Inventory Total current assets Net PP&E Total Assets Balance Sheet 75 225 75 375 375 375 300 1,425 Balance Sheet 300 225 150 675 300 975 Account payable to Subsidiary Account payable to third party Total current liabilities Bank loans Total Equity Total Liabilities & Equity Account payable to third party Total current liabilities Bank loans Loans from Parent Total Equity Total Liabilities & Equity 225 300 Show all results with one decimal for numbers and two decimals for percent responses using the following format: 1,234.5 or 12.32%. For any questions requiring days, assume a 365 day year. 525 375 525 1,425 375 375 75 375 150 975
Prego owns 100% of Spacci. Below you will find the financial statements of both firms. Find consolidated interest expense. Prego 1 Sales Purchases from Subsidiary Other COGS Gross Profit SG&A Tax Net Income Operating Profit Interest Expense Interest Income from Subsidiary Earnings before tax Spacci Profit & Loss 4 COGS Gross Profit SG&A Sales to Parent Sales to nonrelated parties Total Sales Tax Net Income Profit & Loss Operating Profit Interest Expense for Loan from Parent Interest Expense for Bank Loans Earnings before tax 7,500 (3,750) (2,250) 1,500 (750) 750 (75) 38 713 (150) 563 3,750 2,250 6,000 (4.500) 1,500 (750) 750 (38) (1) 711 (20) 691 Cash Account Receivable from nonrelated parties Inventory Total current assets Net PP&E Loan to Subsidiary Investment in Subsidiary Total Assets Cash Account Receivable from Parent Inventory Total current assets Net PP&E Total Assets Balance Sheet 75 225 75 375 375 375 300 1,425 Balance Sheet 300 225 150 675 300 975 Account payable to Subsidiary Account payable to third party Total current liabilities Bank loans Total Equity Total Liabilities & Equity Account payable to third party Total current liabilities Bank loans Loans from Parent Total Equity Total Liabilities & Equity 225 300 Show all results with one decimal for numbers and two decimals for percent responses using the following format: 1,234.5 or 12.32%. For any questions requiring days, assume a 365 day year. 525 375 525 1,425 375 375 75 375 150 975
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prego owns 100% of Spacci.
Below you will find the financial statements of both firms.
Find consolidated interest expense.
Prego
1
Sales
Purchases from Subsidiary
Other COGS
Gross Profit
SG&A
Tax
Net Income
Operating Profit
Interest Expense
Interest Income from Subsidiary
Earnings before tax
Spacci
Profit & Loss
4
COGS
Gross Profit
SG&A
Sales to Parent
Sales to nonrelated parties
Total Sales
Tax
Net Income
Profit & Loss
Operating Profit
Interest Expense for Loan from Parent
Interest Expense for Bank Loans
Earnings before tax
7,500
(3,750)
(2,250)
1,500
(750)
750
(75)
38
713
(150)
563
3,750
2,250
6,000
(4.500)
1,500
(750)
750
(38)
(1)
711
(20)
691
Cash
Account Receivable from nonrelated parties
Inventory
Total current assets
Net PP&E
Loan to Subsidiary
Investment in Subsidiary
Total Assets
Cash
Account Receivable from Parent
Inventory
Total current assets
Net PP&E
Total Assets
Balance Sheet
75
225
75
375
375
375
300
1,425
Balance Sheet
300
225
150
675
300
975
Account payable to Subsidiary
Account payable to third party
Total current liabilities
Bank loans
Total Equity
Total Liabilities & Equity
Account payable to third party
Total current liabilities
Bank loans
Loans from Parent
Total Equity
Total Liabilities & Equity
225
300
Show all results with one decimal for numbers and two decimals for percent responses using the
following format: 1,234.5 or 12.32%. For any questions requiring days, assume a 365 day year.
525
375
525
1,425
375
375
75
375
150
975
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