Paranoid Parent Corp. distributes baby care products. One of their wholly-owned subsidiaries, Sleep Soft, Inc. manufactures baby monitoring devices and sells them both internally and externally. Sleep Soft manufactures the baby monitors at a price of $ 50 per unit. Sleep Soft sells to Paranoid Parent at a price of $ 75 per unit, while Sleep Soft sells to non-affiliated customers at a price of $ 90 per unit. Sleep Soft is the exclusive supplier of baby monitors to Paranoid Parent. Because of their high end brand image, Paranoid Parent is able to sell the baby monitors at a price of $ 120 per unit. The following baby monitor information was obtained from the financial statements of Paranoid Parent and Sleep Soft: Inventory, January 1, 2020 Inventory, December 31, 2020 Paranoid Parent $ 600,000 750,000 Sleep Soft $ 1,000,000 1,400,000 Sales – Year-ending Dec. 31, 2020 1,560,000 3,825,000 Based on the information provided above, please answer the following questions: A. (1) What is "Consolidated Baby Monitor Inventory" on the December 31, 2020 Balance Sheet:? B. (1) What is "Consolidated Baby Monitor Sales" for the year-ending December 31, 2020?
Paranoid Parent Corp. distributes baby care products. One of their wholly-owned subsidiaries, Sleep Soft, Inc. manufactures baby monitoring devices and sells them both internally and externally. Sleep Soft manufactures the baby monitors at a price of $ 50 per unit. Sleep Soft sells to Paranoid Parent at a price of $ 75 per unit, while Sleep Soft sells to non-affiliated customers at a price of $ 90 per unit. Sleep Soft is the exclusive supplier of baby monitors to Paranoid Parent. Because of their high end brand image, Paranoid Parent is able to sell the baby monitors at a price of $ 120 per unit. The following baby monitor information was obtained from the financial statements of Paranoid Parent and Sleep Soft: Inventory, January 1, 2020 Inventory, December 31, 2020 Paranoid Parent $ 600,000 750,000 Sleep Soft $ 1,000,000 1,400,000 Sales – Year-ending Dec. 31, 2020 1,560,000 3,825,000 Based on the information provided above, please answer the following questions: A. (1) What is "Consolidated Baby Monitor Inventory" on the December 31, 2020 Balance Sheet:? B. (1) What is "Consolidated Baby Monitor Sales" for the year-ending December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Paranoid Parent Corp. distributes baby care products. One of their wholly-owned
subsidiaries, Sleep Soft, Inc. manufactures baby monitoring devices and sells them both
internally and externally.
Sleep Soft manufactures the baby monitors at a price of $ 50 per unit. Sleep Soft sells to
Paranoid Parent at a price of $ 75 per unit, while Sleep Soft sells to non-affiliated customers at
a price of $ 90 per unit. Sleep Soft is the exclusive supplier of baby monitors to Paranoid
Parent.
Because of their high end brand image, Paranoid Parent is able to sell the baby monitors at
a price of $ 120 per unit.
The following baby monitor information was obtained from the financial statements of
Paranoid Parent and Sleep Soft:
Inventory, January 1, 2020
Inventory, December 31, 2020
Paranoid Parent
$ 600,000
Sleep Soft
$ 1,000,000
1,400,000
750,000
Sales – Year-ending Dec. 31, 2020
1,560,000
3,825,000
Based on the information provided above, please answer the following questions:
A. (1) What is "Consolidated Baby Monitor Inventory" on the December 31, 2020
Balance Sheet:?
B. (1) What is “Consolidated Baby Monitor Sales" for the year-ending December 31, 2020?
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