Sure Corporation, a 75% own subsidiary of Pretty Corporation sells inventory to its parent at 125% above cost, while Pretty Corporation sells merchandise to its subsidiary at 120% of cost. Inventories of the two companies for 2020 are as follows: Beginning inventory Ending inventory Pretty Corp. P400,000 500,000 Sure Corp. P250,000 200,000 Pretty Corporation's beginning and ending inventories include merchandise acquired from Sure Corporation of P150,000 and P200,000, respectively. Sure Corporation also reported beginning and ending inventories from Pretty Corporation of P80,000 and P60,000, respectively. Required: 1. If Sure Corporation reported a net income for 2020 of P300,000, the non-controlling interest on subsidiary net income is: 2. In the consolidated balance sheet, inventories should be reported at:

Sure Corporation, a 75% own subsidiary of Pretty Corporation sells inventory to its parent at 125% above cost, while Pretty Corporation sells merchandise to its subsidiary at 120% of cost. Inventories of the two companies for 2020 are as follows: Beginning inventory Ending inventory Pretty Corp. P400,000 500,000 Sure Corp. P250,000 200,000 Pretty Corporation's beginning and ending inventories include merchandise acquired from Sure Corporation of P150,000 and P200,000, respectively. Sure Corporation also reported beginning and ending inventories from Pretty Corporation of P80,000 and P60,000, respectively. Required: 1. If Sure Corporation reported a net income for 2020 of P300,000, the non-controlling interest on subsidiary net income is: 2. In the consolidated balance sheet, inventories should be reported at:

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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Panther, Inc. wishes to estimate its ending inventory using a retail method. Information for the year ended December 31, 2020 is as follows: Beginning Inventory (at cost) Beginning inventory (at retail) Purchases (at cost) Purchase Returns (at cost) Purchase Returns (at retail) REQUIRED: $ 20,000 $ 30,000 $110,000 $ 10,000 $ 15,000 Sales (net) Net Mark-Downs Freight-In Purchases (at retail) Net Mark-Ups $240,000 $ 15,000 $ 15,000 $ 230,000 $ 25,000 Assuming Panther wishes to use the LIFO retail method, calculate the estimated ending inventory at December 31, 2020.
During 2019, Parent Company sold goods costing $ 21,000 to its subsidiary, Synergy, at a gross profit of 30%. Synergy had none of this inventory on hand at the end of 2019. What is the value of Sales? Select one: O a. 26,000 O b. 25,000 O c. 26,250 O d. 30,000
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XYZ Co. is a retail company and its selected financial statements items are given as following. Its Total Assets are 5- 42300 and 39300 respectively for the year 2020 and 2019. Its Total Current Assets are 20200 and 17700 respectively for the year 2020 and 2019. Its Total Liabilities are 31500 and 29200 respectively for the year 2020 and 2019. Its Total Current Liabilities are 21500 and 18800 respectively for the year 2020 and 2019. Inventory equals to 7500 and 6800 respectively for the year 2020 and 2019. Cash and Cash Equivalents equals to 4000 and 3000 respectively for the year 2020 and 2019. (All numbers are in dollars). What is current ratio of XYZ Co. for the year 2020? a) 74% 01 b) 84% C) 94% d) 99%
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In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020, and $ 540 million on January 31, 2019, cost of goods sold of $ 5,746 million for the year, and net sales of $ 7,184 million for the year. Compute Kingbird's inventory turnover for the fiscal year 2019. (Round answer to 2 decimal places, e.g. 7.62.) Inventory turnover times Compute Kingbird's average days to sell inventory for the fiscal year 2019. (Round answer to 2 decimal place, e.g. 7.65. Use 365 days for calculation.) Average days to sell inventory days
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Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company’s interim income statements as originally reported under the LIFO method follow: 2019 2020 1stQ 2ndQ 3rdQ 4thQ 1stQ Sales $ 14,000 $ 16,000 $ 18,000 $ 20,000 $ 22,000 Cost of goods sold (LIFO) 4,400 5,400 6,200 7,400 8,900 Operating expenses 2,400 2,600 3,000 3,400 3,600 Income before income taxes $ 7,200 $ 8,000 $ 8,800 $ 9,200 $ 9,500 Income taxes (25%) 1,800 2,000 2,200 2,300 2,375 Net income $ 5,400 $ 6,000 $ 6,600 $ 6,900 $ 7,125 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 2019 2020 1stQ 2ndQ 3rdQ 4thQ…
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