What balance will be reported for inventory in balance sheet

Assignment Help Financial Accounting
Reference no: EM13851787

Bunker Corporation owns 80 percent of Harrison Company's stock. At the end of 20X8, Bunker and Harrison reported the following partial operating results and inventory balances:


Bunker Corporation

Harrison Company

Total sales

$

714,000

$

537,000

Sales to Harrison Company


152,600



Sales to Bunker Corporation




252,600

Net income




33,000

Operating income (excluding investment income from Harrison)


83,000



Inventory on hand, December 31, 20X8, purchased from:





Harrison Company


50,520



Bunker Corporation




45,780

Bunker regularly prices its products at cost plus a 40 percent markup for profit. Harrison prices its sales at cost plus a 20 percent markup. The total sales reported by Bunker and Harrison include both intercompany sales and sales to nonaffiliates.

Required:

a. What amount of sales will be reported in the consolidated income statement for 20X8?

b. What amount of cost of goods sold will be reported in the 20X8 consolidated income statement? (Do not round intermediate calculations.)

c. What amount of consolidated net income and income to controlling interest will be reported in the 20X8 consolidated income statement?

d. What balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8?

Reference no: EM13851787

Questions Cloud

What are financial markets : What are financial markets. why do they exist
Analyzing a visual text for messages about gender : Analyzing a Visual Text for Messages about Gender
What is the opportunity cost of three units of cereal : Assume that you have a budget of $30 to spend on milk and cereal only. What is the most you can purchase of cereal? What is the opportunity cost of three units of cereal? If you purchase 5 units of cereal (Qc=5), then how many of milk can you purchas..
Tax affect the amount of oil the company extracts : For five years, an oil drilling company has operated profitably in the state of Alaska (the only place it operates). Last year, the state legislature instituted a flat annual tax of $100,000 on any company extracting oil (or natural gas) in Alaska. H..
What balance will be reported for inventory in balance sheet : What balance will be reported for inventory in the consolidated balance sheet for December 31, 20X8? What amount of sales will be reported in the consolidated income statement for 20X8?
Even though free trade may be good for the economy : Explain why, even though free trade may be good for the economy, we still have trade barriers (tariffs, quotas, regulations, subsidies, etc.) Relate your answer to the Stolper-Samuelson theory and the concept of “specific factors.”
Develop research and analytical skills in business law case : Research about real case study about breach of director duties and make a report & powerpoint presentation.Purpose: To develop research and analytical skills in Business Law Case Law
Developing countries that are labor-abundant : Describe the Stolpher-Samuelson theory of trade. How does it differ from the factor endowment model? What are its predicted effects on wage-inequality in (a) industrialized countries that are capital-abundant and (b) developing countries that are lab..
What price of computers the two countries might trade : Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How the amounts related to accounts receivable and bad debt

In one year, a company had $30,000 Sales Revenue on credit. At the start of the year, the Accounts Receivable showed a $6,000 debit balance and the Allowance for Doubtful Accounts showed a $400 credit balance.

  Prepare the amortization schedule

Prepare the amortization schedule and then record all required journal entries that would be made by Barker on the following dates (a) December 31, 2012; (b) December 31, 2013; (c) December 31, 2014; (d) December 31, 2015; and (e) December 31, 201..

  Illustrate how characteristic of expenditures distinguish

What characteristics of expenditures distinguish them from expenses in the financial accounting sense?

  Prepare the schedule to reconcile the bank and book balances

Given the following information for Pace Company, derived from the bank reconciliation information for the month of June: Cash Balance per bank statement at June 30 $7,200. Prepare the schedule to reconcile the bank and book balances to the correct b..

  What is annual market rate

The bonds mature in three years. The annual market rate at the date of issuance is 12%, and bonds are sold for $231,570.

  Calculate the receivables turnover ratio

Calculate the receivables turnover ratio and average collection period for 2009. (Use ?oNet Product Sales.?? Assume all sales were credit sales.)

  Assume the roles of brent and den

The request should specify all the details of Brent's and Den's plan that will motivate the bank to grant the loan. Include a budgeted income statement for the first six months of the copy centre's operation.

  Compute welchs gross pay-payroll deductions

Compute Welch's gross pay, payroll deductions, and net pay for the full year 2012. Round all amounts to the nearest dollar and compute United's total 2012 payroll expense for Welch.

  Diversified rentals ltd owns a large fleet of different

diversified rentals ltd owns a large fleet of different vehicles which are each classified into one of three categories

  Question what company policies or procedures could you

question what company policies or procedures could you recommend to prevent each of the subsequent activities?a a clerk

  How should this matter be resolved

Two partners have a dispute concerning current earnings. One partner believes his share is $75,000, while the other partner it is $100,000. How should this matter be resolved?

  The bennington company uses the perpetual inventory system

the bennington company uses the perpetual inventory system and the fifo inventory cost method. the bennington company

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd