Preparing a consolidated income statement - with noncontrolling interest, but AAP or intercompany profits A parent company purchased an 70% interest in its subsidiary several years ago with no AAP (i. e., purchased at book value). Each reports the following income statement for the current year, as shown in part b. below.

b. Prepare the consolidated income statement for the current year.

Elimination Entries

Parent Subsidiary Dr. Cr. Consolidated

Income statement:

Sales $6,000,000 $900,000

Cost of goods sold (4,200,000) (540,000)

Gross profit 1,800,000 360,000

Income (loss) from subsidiary 88,2000 0

Operating expenses (1,140,000) (234,000)

Net income $748,200 $126,000

Net income attributable to noncontrolling interests

Net income attributable to parent

Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.

Mart's boutique has sales of $820,000 and costs of $540,000. interest expense is $36,000 and depreciation is $59,000. the tax rate is 21 percent. what is the net income? $146,150 221,200 105,000 139,050