Separate income statement for ABC and XYZ for the year ended, 2022 are summarized as follows: ABC Co. XYZ Corp. Sales P1,500,000 P2,000,000 Cost of sales (800,000) (1,200,000) Operating expenses (300,000) (420,000) Dividend revenue 200,000 140,000 Net income P600,000 P520,000 What is the net income attributable to the controlling interest? How much is the consolidated cost of sales for 2022?
ABC Company owns an 80% interest in XYZ Corporation at underlying book value. ABC’s investment in XYZ Corporation is carried on cost. During 2022, XYZ Corp. sold merchandise to ABC Co. for P500,000 at a mark-up of 25%. At December 31, 2022, half of his merchandise is included in ABC’s inventory. Meanwhile, included in XYZ’s beginning inventory was P200,000 merchandise from inter-company sales which was made at 20% gross profit. ABC and XYZ declared dividends P300,000 and P250,000 respectively and paid 90% of the declared amount in 2022.
Separate income statement for ABC and XYZ for the year ended, 2022 are summarized as follows:
|
|
ABC Co. |
XYZ Corp. |
|
Sales |
P1,500,000 |
P2,000,000 |
|
Cost of sales |
(800,000) |
(1,200,000) |
|
Operating expenses |
(300,000) |
(420,000) |
|
Dividend revenue |
200,000 |
140,000 |
|
Net income |
P600,000 |
P520,000 |
- What is the net income attributable to the controlling interest?
- How much is the consolidated cost of sales for 2022?
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