Below are the Statements of Comprehensive Income of Riego and Mercadejas Companies for2020. Riego Company's Statement of Comprehensive Income was prepared before itreported its share of Mercadejas Company's income. Riego Company uses the equity method.Mercadejas Co.Riego Co.800,000320,000480,000380,000100,000SalesCost of salesGross profitOperating ExpensesNet IncomeInventories, 1/1/20:Purchased from outsidersPurchased intercompanyInventories, 12/31/20:Purchased from outsidersPurchased intercompany200,00090,000110,00060,00050,00015,00020,00010,00025,0005,0005,000The gross profit rate, as a percentage of sales, has been stable for several years and 60% ofMercadejas Company's sales are to Riego Company. 75% of Mercadejas Company's wasacquired by Riego Company some time ago at book value. Mercadejas Company's equity atDecember 31, 2020 consisted of P20,000 of capital stock and P60,000 of retained earnings.REQUIRED:Compute the amount of the following in the consolidated financial statementson December 31, 2020:a. Inventoriesb. Investment in Mercadejas Companyc. Investment Incomed. NCI in Mercadejas Company's Net Income

Inventory - The total amount of raw materials, work-in-progress, and finished commodities that a…

Below are the Statements of Comprehensive Income of Riego and Mercadejas Companies for 2020. Riego Company's Statement of Comprehensive Income was prepared before it reported its share of Mercadejas Company's income. Riego Company uses the equity method. Sales Cost of sales Gross profit Operating Expenses Net Income Inventories, 1/1/20: Purchased from outsiders Purchased intercompany Inventories, 12/31/20: Mercadejas Co. 200,000 90,000 110,000 60,000 50,000 15,000 Riego Co. 800,000 320,000 480,000 380,000 100,000 20,000 10,000

Below are the Statements of Comprehensive Income of Riego and Mercadejas Companies for 2020. Riego Company's Statement of Comprehensive Income was prepared before it reported its share of Mercadejas Company's income. Riego Company uses the equity method. Sales Cost of sales Gross profit Operating Expenses Net Income Inventories, 1/1/20: Purchased from outsiders Purchased intercompany Inventories, 12/31/20: Mercadejas Co. 200,000 90,000 110,000 60,000 50,000 15,000 Riego Co. 800,000 320,000 480,000 380,000 100,000 20,000 10,000

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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Portions of the financial statements for Alliance Technologies are provided below. ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $365,000 $215,000 66,000 16,600 25,000 322,600 $ 42,400 Total expenses Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 $ 6,600 13,600 9,600 5,600 8,600 22,400 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
The following comparative information is available for Blossom Company for 2025. Sales revenue Cost of goods sold Operating expenses (including depreciation) Depreciation Cash paid for inventory purchases Net income $ LIFO eTextbook and Media Net cash provided by operating activities $ LIFO $81,000 38,000 30,000 Quality of earnings ratio 9,100 LIFO 38,000 Determine net income under each approach. Assume a 30 % tax rate. FIFO $ $81,000 31,000 30,000 9,100 Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis. 38,000 FIFO LIFO Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, eg. 5.15.) FIFO FIFO
The preliminary 2024 income statement of Alexian Systems, Incorporated, is presented below: ALEXIAN SYSTEMS, INCORPORATED Income Statement For the Year Ended December 31, 2024 ($ in millions, except earnings per share) Revenues and gains: Sales revenue Interest revenue Other income Total revenues and gains Expenses: Cost of goods sold Selling and administrative expense Income tax expense Total expenses Net Income $ 517 13 130 660 250 218 48 516 $144 $ 14.40 Earnings per share Additional information: 1. Selling and administrative expense includes $35 million in restructuring costs. 2. Included in other income is $124 million in income from a discontinued operation. This consists of $90 million in operating income and a $34 million gain on disposal. The remaining $6 million is from the gain on sale of investments. 3. Cost of Goods Sold in 2024 includes an increase of $4 million to correct an understatement of Cost of Goods Sold in 2023. The amount is material. Required: Prepare a revised…
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[The following information applies to the questions displayed below.] 2021 2020 2019 Selected comparative financial statements of Korbin Company follow. Comparative Income Statements For Years Ended December 31 KORBIN COMPANY Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities Numerator: 2021 2020 2019 $ 548,688 $ 420,340 $ 291,700 330,310 263,974 186,688 218,378 156,366 Common stock Other paid-in capital Retained earnings Total liabilities and equity 1 1 77,914 58,007 49,382 36,990 127,296 94,997 91,082 61,369 16,941 12,581 $ 74,141 $ 48,788 1 1 1 December 31 2021 $ 62,574 0 Current Ratio $25,844 65,000 8,125 78,043 Required: 1. Complete the below table to calculate each year's current ratio. $ 41,881 1,200 103,962 $ 55,985 3,920 114,438…
Multiple-step income statement with NCI Presented below is information related to Viel Company at December 31, 2020. Sales revenue $ 310,000 Cost of goods sold 140,000 General and administrative expenses 50,000 Gain on life insurance proceeds 30,000 Loss on sale of securities 10,000 Loss on impairment of property, plant, and equipment 6,000 Income tax expense 12,000 Income allocation to non-controlling interest 25,000 Common dividends declared 14,000 Preferred dividends declared and paid 5,000 Unrealized loss on available-for-sale debt investments (33.33% effective tax rate) 15,000 Retained earnings, January 1 44,000 Common stock, January 1 100,000 Paid-in capital in excess of par value, January 1 50,000 Accumulated other comprehensive income, January 1 $ 13,000 Common stock outstanding (shares) 100,000 Instructions: Prepare a consolidated multiple-step income statement. Round…
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