Question
In: Accounting
The following information has been taken from the consolidation worksheet of Graham Company and its 80%...
The following information has been taken from the consolidation worksheet of Graham Company and its 80% owned subsidiary, Stage Company. (1.) Graham reports a loss on sale of land (to an outside party) of $5,000. The land cost Graham $20,000. (2.) Noncontrolling interest in Stage's net income was $30,000. (3.) Graham paid dividends of $15,000. (4.) Stage paid dividends of $10,000. (5.) Excess acquisition-date fair value over book value amortization was $6,000. (6.) Consolidated accounts receivable decreased by $8,000. (7.) Consolidated accounts payable decreased by $7,000.
Using the indirect method, where does the decrease in accounts receivable appear in a consolidated statement of cash flows?
a) $6,400 increase to net income as an operating activity.
b) $8,000 decrease to net income as an operating activity.
c) $8,000 increase as an investing activity.
d) $6,400 decrease to net income as an operating activity.
e) $8,000 increase to net income as an operating activity.
How is the loss on sale of land reported on the consolidated statement of cash flows?
Multiple Choice
a) $5,000 added to net income as an operating activity.
b) $20,000 deducted from net income as an operating activity.
c) $20,000 added to net income as an operating activity.
d) $15,000 deducted from net income as an operating activity.
e) $5,000 deducted from net income as an operating activity.
Solutions
Expert Solution
i have explained the treatment of above
cases and on that basis i have arrived at correct option of eachh
question
ekkarill92 answered 2 years agoRelated Solutions
The following information has been extracted from the trial balance worksheet of Motorize IT for its...
The following information has been extracted from the trial
balance worksheet of Motorize IT for its 3rd
year of operation ended November 30, 2019.
Motorize IT
Adjusted Trial Balance
November 30, 2019
ACCOUNT
DEBIT
CREDIT
Cash
$ 11,000
Accumulated amortization – printing
press
10,600
Accounts receivable
11,770
Accounts payable
6,789
Supplies
6,110
Sales of Software - CD’s
4,000
Prepaid insurance
1,500
Unearned consulting fees
2,897
Printing press
16,600
Amortization expense – printing
press
7,500
Prepaid rent
3,130
Patents (expire 2024)
7,000...
The following data have been taken from the accounting records of Graham Corporation for the year...
The following data have been taken from the accounting records
of Graham Corporation for the year ended December 31, 2019. Total
manufacturing overhead costs incurred $338,000 Manufacturing
overhead applied to Work in Process 345,000 Purchases of raw
materials 235,000 Direct labor 135,000 Raw materials inventory -
January 1, 2019 10,000 Raw materials inventory - December 31, 2019
15,000 Work in process inventory - January 1, 2019 20,000 Work in
process inventory - December 31, 2019 35,000 Finished goods
inventory –...
In preparing the consolidation worksheet for Pencil Corporation and its 60 percent–owned subsidiary, Stylus Company, the...
In preparing the consolidation worksheet for Pencil Corporation
and its 60 percent–owned subsidiary, Stylus Company, the following
consolidation entries were proposed by Pencil's
bookkeeper:
Worksheet Entries
Debit
Credit
Cash
100,000
Accounts Payable
100,000
To eliminate the unpaid balance for intercorporate
inventory sales in 20X5.
Cost of Goods Sold
16,800
Income from Stylus Company
16,800
To eliminate unrealized inventory profits at
December 31, 20X5.
Income from Stylus Company
196,000
Sales
196,000
To eliminate intercompany sales for 20X5.
Pencil's bookkeeper recently graduated...
The following information has been taken from the statement of financial position of Cos plc (Cos),...
The following information has been taken from the statement of
financial position of Cos plc (Cos), a HK listed company:
HK$ m
Equity and Reserves
Ordinary shares
15
Reserves
29
44
6% preference shares
6
50
Non-current Liabilities
4% Redeemable Bonds
18
Current Liabilities
Trade and other creditors
12
Total Equity and liabilities
80
The ordinary shares of Cos have a nominal value of HK$5 per
share and a current market price of HK$31 per share.
The 6% preference shares...
The following information has been taken from the perpetual inventory system of Imperial Mfg. Co. for...
The following information has been taken from the perpetual
inventory system of Imperial Mfg. Co. for the month ended September
30:
Purchases of direct materials
...........................................
$72,000
Direct Materials Used
...........................................
$70,000
Direct labor costs assigned in production
...........................................
$40,000
Manufacturing overhead labor costs incurred
...........................................
$60,000
Balances in Inventory
Sept. 30
Sept. 1
Materials
$?
$60,000
Work in Progress
$35,000
$45,000
Finished Goods
$88,000
$76,000
Prepare the Income Statement for the month of September;
Net Sales amount to $900,000...
E15-16 (Computation of Retained Earnings) The following information has been taken from the ledger accounts of...
E15-16 (Computation of Retained Earnings) The following information has been taken from the ledger accounts of Isaac Stern Corporation.
Total income since incorporation $317,000
Total cash dividends paid 60,000
Total value of stock dividends distributed 30,000
Gains on treasury stock transactions 18,000
Unamortized discount on bonds payable 32,000
Instructions
Determine the current balance of retained earnings.
Pronghorn Inc. and Culver Corporation are Canadian fertilizer companies. The following information has been taken from...
Pronghorn Inc. and Culver Corporation are Canadian fertilizer
companies. The following information has been taken from their
financial statements for the fiscal years ended December 31. All
figures are in millions of dollars.
CULVER
2021
2020
2019
Net sales
$8,862.0
$4,544.1
$3,049.5
Gross profit
5,228.1
1,885.0
1,053.4
Profit
3,534.2
1,167.0
675.0
PRONGHORN
2021
2020
2019
Net sales
$9,217
$5,710
$4,306
Gross profit
3,590
1,694
885
Profit
1,193
410
36
1) Calculate both companies’ gross profit margin and profit margin
for...
The following information has been taken from the ledger accounts of Nash Corporation. Total income since...
The following information has been taken from the ledger
accounts of Nash Corporation.
Total income since incorporation
$337,000
Total cash dividends paid
57,000
Total value of stock dividends distributed
30,000
Gains on treasury stock transactions
19,000
Unamortized discount on bonds payable
30,000
Determine the current balance of retained earnings.
Current balance of retained earnings
$enter the current balance of retained earnings in
dollars
The following information has been extracted from the financial statements of a company. Use it to...
The following information has been extracted from the financial
statements of a company. Use it to answer the 4 questions that
follow it. When answering the questions (filling in the blanks), DO
NOT use dollar signs, USE commas to separate thousands, DO NOT use
parenthesis to denote negative numbers, USE the negative sign in
front of first digit for negative numbers. Round to the nearest
dollar.
Earnings before interests and taxes: EBIT in 2020 =
600
Tax rate: T = ...
The following information has been extracted from the financial statements of a company. Use it to...
The following information has been extracted from the financial
statements of a company. Use it to answer the 4 questions that
follow it. When answering the questions (filling in the blanks), DO
NOT use dollar signs, USE commas to separate thousands, DO NOT use
parenthesis to denote negative numbers, USE the negative sign in
front of first digit for negative numbers. Round to the nearest
dollar.
Earnings before interests and taxes: EBIT in 2020 =
400
Tax rate: T = ...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
- Using one quantitative and one qualitative health policy research method described in this chapter, design a...
- What is the Rawls' solution to the age-old question of social (economic / distributive) justice?...
- St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage...
- The following information is available for Robstown Corporation for 20Y8: Inventories January 1 December 31 Materials...
ADVERTISEMENT