Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    Acc132 Ay1718 Eq4-Solution

    Uploaded by

    Rod
    This document contains 4 problems related to consolidated financial statements. Problem 1 contains financial information for Parent (P) and Non-Controlling Interest (NCI) entities and calculations of consolidated balances. Problem 2 calculates consolidated net income and allocates it between parent and NCI. Problem 3 provides sales, cost of goods sold, operating expenses and net income figures for consolidated and NCI. Problem 4 similarly calculates consolidated and NCI net income and allocates dividends.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Acc132 Ay1718 Eq4-Solution

    Uploaded by

    Rod
    40 views4 pages
    This document contains 4 problems related to consolidated financial statements. Problem 1 contains financial information for Parent (P) and Non-Controlling Interest (NCI) entities and calculations of consolidated balances. Problem 2 calculates consolidated net income and allocates it between parent and NCI. Problem 3 provides sales, cost of goods sold, operating expenses and net income figures for consolidated and NCI. Problem 4 similarly calculates consolidated and NCI net income and allocates dividends.

    Original Description:

    gdfgd

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains 4 problems related to consolidated financial statements. Problem 1 contains financial information for Parent (P) and Non-Controlling Interest (NCI) entities and calculations of consolidated balances. Problem 2 calculates consolidated net income and allocates it between parent and NCI. Problem 3 provides sales, cost of goods sold, operating expenses and net income figures for consolidated and NCI. Problem 4 similarly calculates consolidated and NCI net income and allocates dividends.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    40 views4 pages

    Acc132 Ay1718 Eq4-Solution

    Uploaded by

    Rod
    This document contains 4 problems related to consolidated financial statements. Problem 1 contains financial information for Parent (P) and Non-Controlling Interest (NCI) entities and calculations of consolidated balances. Problem 2 calculates consolidated net income and allocates it between parent and NCI. Problem 3 provides sales, cost of goods sold, operating expenses and net income figures for consolidated and NCI. Problem 4 similarly calculates consolidated and NCI net income and allocates dividends.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Problem 1.

    75% 25%
    Total Parent NCI 180,000
    225,000 170,000 55,000 (20,000)
    BV (180,000) (135,000) (45,000) 5,000
    Excess 45,000 35,000 10,000 30,000
    Equipment 20,000 195,000
    Inventories (5,000) 48,750
    Building (30,000) (11,250) (3,750)
    Excess 30,000 23,750 6,250
    79% 26%
    a.
    Sales by PIG 1,000,000
    Sales by Piglet 233,333
    Elimination (150,000)
    Consolidated Sales 1,083,333

    b. Conso COGS
    COGS -PIG 400,000
    COGS Piglet 100,000
    Elimination (150,000)
    Unrealized Profit 7,500
    COGS - Inventory excess FV 5,000 273,500
    Conso COGs 362,500

    c. Conso Gross Profit 720,833


    Distribution Cost (233,333)
    Admin Cost (96,667)
    Equipment Dep. 1,333
    Building Dep. (1,000)
    Income Tax Expense (121,000)
    Impairment (8,000)
    Consolidated Profit 262,167

    d.
    Revenues 233,333
    COGs 100,000
    GP 133,333
    Distribution (33,333)
    Admin (16,667)
    Income Tax Expense (25,000)
    Amort
    Inventory (5,000)
    Equipment 1,333
    Building (1,000)
    Adjusted NI 53,667
    % of NCI 13,417
    Impairment Share of NCI (1,667)
    NCI in NI 11,750

    e.
    Conso NI 262,167
    NCI NI 11,750
    Net Income to Parent 250,417

    f. Beg 55,000
    NCI 11,750
    Share in Dividends (3,333)
    NCI, end 63,417

    Problem 2.
    a. P Company S Company Total
    Net Income 50,000 36,000 86,000
    Realized Inter-co Profit 9,000 7,500 16,500
    Unrealized Inter-co Profit 3,000 1,800 4,800
    Amortization 0 6,000 6,000
    Adjusted NI 56,000 35,700 91,700
    NCI NI (b) 3,570
    Profit to Parent (a) 88,130

    Problem 3
    a. Consolidated Sales
    YM Co. 3,850,000
    PV Co. 1,680,000
    Interco. Sales - 917,500
    Consolidated Sales 4,612,500

    b. Consolidated COGS
    YM Co. 1,946,000
    PV Co. 1,176,000
    Inter co COGS - 917,500
    Realized Inter co Profit - 42,000
    Unrealized Inter-co Profit 39,550
    Consolidated COGS 2,202,050

    c. Conso Net Income


    Conso Sales 4,612,500
    Conso COGS - 2,202,050
    Operating Expense - 1,050,000
    Dividend Income - non affiliate 70,000
    Conso Net Income 1,430,450

    d. NCI in Net Income


    Net Income, PV 224,000
    Unrealized Profit - 26,950
    Dividend Income 70,000
    Adjusted Subsidiary's Net Inc 267,050
    NCI % 30%
    NCI in Net Income 80,115

    Problem 4.
    Pretty Suave Total
    Net Income 260,000 39,000 299,000
    Realized Inter-co Profit 2,600 2,600
    Unrealized inter-co Profit 3,900 3,900
    Adjusted NI 260,000 37,700 297,700
    NCI NI 11,310
    NCI to Pretty (a) 286,390

    b. Assuming full Goodwill


    Total Parent NCI
    455,000 318,500 136,500

    NCI, Beg. 136,500


    NCI in NI 11,310
    Share in Dividends 7,800
    NCI in Net Assets 140,010

    Assuming Partial Goodwill


    Total Parent NCI
    455,000 318,500 136,500

    NCI, Beg. 136,500


    NCI in NI 11,310
    Share in Dividends 7,800
    NCI in Net Assets 140,010
    226,667

    You might also like