Prego owns 100% of Spacci.Below you will find the financial statements of both firms.Find consolidated sales.PregoSalesPurchases from SubsidiaryOther COGSGross ProfitSG&AOperating ProfitInterest ExpenseInterest Income from SubsidiaryEarnings before tax1TaxNet Income.SpacelProfit & LossCOGSGross ProfitSG&ASales to ParentSales to nonrelated partiesTotal SalesProfit & LossTaxNet IncomeOperating ProfitInterest Expense for Loan from ParentInterest Expense for Bank LoansEarnings before tax7,500(3,750)(2,250)1,500(750)750(75)38713(150)5633,7502,2506,000(4,500)1,500(750)750(38)(1)711(20)691CashAccount Receivable from nonrelated partiesInventoryTotal current assetsNet PP&ELoan to SubsidiaryInvestment in SubsidiaryTotal AssetsCashAccount Receivable from ParentInventoryTotal current assetsNet PP&ETotal AssetsBalance Sheet75225753753753753001,425Balance Sheet300225150675300975Account payable to SubsidiaryAccount payable to third partyTotal current liabilitiesBank loansTotal EquityTotal Liabilities & EquityAccount payable to third partyTotal current liabilitiesBank loansLoans from ParentTotal EquityTotal Liabilities & Equity225300Show all results with one decimal for numbers and two decimals for percent responses using thefollowing format: 1,234.5 or 12.32%. For any questions requiring days, assume a 365 day year.5253755251,42537537575375150975

When a company purchases more than 50% of the voting rights of another company, it becomes the…

Answered: Prego owns 100% of Spacci. Below you…

Business

Accounting

Prego owns 100% of Spacci. Below you will find the financial statements of both firms.

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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