Give true answer Fan Co holds 80% of the common stock of Pen Co.During 2010, Fan reported sales of $2,460,000 and acost of goods sold of $1,000,000. For this sameperiod, Pen had sales of $670,000 and a cost of goodssold of $320,000.Included in the amounts for Fan's sales were Fan'ssales of merchandise to Pen for $250,000. There wereno sales from Pen to Fan. Intra-entity sales had thesame mark-up as sales to outsiders. Pen still had 30%of the intra-entity sales as inventory at the end of2010.What are the consolidated sales and cost of goodssold for 2010?

Step 1: Define Intra-entity TransactionsIntra-entity transactions take place between the holding…

Answered: Fan Co holds 80% of the common stock of…

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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P Corporation owns 90% of the common stock of S Company. During 2013, S Company made intercompany sales of $500,000 with a markup of 20% of selling price. The ending inventory of P Corporation includes goods purchased in 2013 from S Company for $150,000. The unrealized profit in the ending inventory on hand by P in 2013 is: Select one: a. 30000 b. 120000 c. 25000 d. 125000
Pinky Company has 80% holdings over Silk Company. During 2018, Pinky Company sold merchandise to Silk Company for P120,000 and in turn, purchased P90,000 from Silk Company. Both sales were made on account. Intercompany sales of merchandise during 2018 were made at the following gross profit rates: Downstream intercompany sale Upstream intercompany sale 25% based on sales 20% based on cost As of December 31, 2018, 30% of all intercompany sales remain in ending inventory of the buying affiliate. The beginning inventory of Pinky includes P2,500 worth of merchandise acquired from Silk on which Silk reported a profit of P1,000 while the beginning inventory of Silk also includes P3,000 of merchandise acquired from Pinky at 35% mark- up. Using cost method, the following results of operations for 2018 are as follows: Pinky Company 198,000 60,000 Silk Company 75,000 10,000 Net income Dividends declared and paid 33. How much of the consolidated net income for 2018 is attributable to the…
The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was $53,000. At the end of the year, the accounts payable balance was $55,000. Lloyd's sales revenue for the year was $3,130,000, while its cost of goods sold for the year was $1,566,000. Calculate Lloyd's days' payable outstanding (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Lloyd's suppliers are n/30, how would you interpret Lloyd's DPO? (Round the DPO to two decimal places, XXX.) KIYE Lloyd's days' payable outstanding for the year is A Lloyd is paying later than acceptable since the credit terms are n/30, which is usually characteristic of a company with great liquidity B. Since the credit terms are n/30, Lloyd is paying ahead of schedule, which is usually characteristic of a company with great liquidity C. Since the credit terms are n/30, Lloyd is paying later than acceptable, which is usually characteristic of a company with poor…
Spritzer Company made sales of $29,750 million in 2018. The cost of goods sold for the year totaled $11,900 million. At the end of 2017, Malt's inventory stood at $1,200 million, and Spritzer ended 2018 with an inventory of $1,600 million. Compute Malt's gross profit percentage and rate of inventory turnover for 2018.
The following table shows financial data (year 2004) for Costco Wholesale and Wal-Mart, two major U.S. retailers. costco ($m) walmart ($m) inventory 3,643.00 29,447.00 sales(net) 48,106.00 286,103.00 COGS 41,651.00 215,493.00 Assume that both companies have an average annual holding cost rate of 30 percent (i.e., it costs both retailers $3 to hold an item that they procured for $10 for one entire year). a. How many days, on average, does a product stay in Costco's inventory before it is sold? Assume that stores are operated 365 days a year. b. How much lower is, on average, the inventory cost for Costco compared to Wal-Mart of a household cleaner valued at $5 COGS? Assume that the unit cost of the household cleaner is the same for both companies and that the price and the inventory turns of an item are independent.
How much is net income?
Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.
d. Kroger reported net earnings of $1,728 million in its fiscal year 2014 income statement. Assuming a 35% tax rate, what amount of net earnings would Kroger report if the company used the FIFO inventory costing method?
Paige, Inc. owns 80% of Sigler, Inc. During 2011, Paige sold goods with a 40% gross profit to Sigler. Sigler sold all of these goods in 2011. For the 2011 consolidated financial statements, how should the summation of Paige and Sigler income statement items be adjusted? a. Sales and cost of goods sold should be reduced by the intercompany sales. b. Sales and cost of goods sold should be reduced by 80% of the intercompany sales. c. Net income should be reduced by 80% of the gross profit on intercompany sales. d. No adjustment is necessary.
For 2022, Superplus Inc. reported $48,000 beginning inventory and $52,000 ending inventory. Net sales were $320,000 and gross profit was $110,000 for the same period. Based on these figures, inventory turnover for 2022 was a. b. 3.4 times. 6.4 times. C. 9.2 times. d. 4.2 times.
Vijay
In the current year, Laker Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Laker expects returns in the following year to equal 6% of sales and 6% of cost of goods sold. The unadjusted balance in Inventory Returns Estimated is a debit of $8,000, and the unadjusted balance in Sales Refund Payable is a credit of $12,000. The adjusting entry or entries to record the expected sales returns is (are):

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