Assume Posey were to obtain a international subsidiary with non-US$ functioning currency. Prepare a memo that addresses
Fantastic news! We've Found the answer you've been seeking!
Question:
Assume Posey were to obtain a international subsidiary with non-US$ functioning currency. Prepare a memo that addresses the following critical elements:
A. Outline the unique calculations required to complete the consolidation worksheet.
B. Outline the unique calculations required on the statement of cash flows.
Transcribed Image Text:
Posev Co. Stargell Corp. DR CR Consolidated Income Statement $801.000 $3,728,000 83,000 145,000 Sales $3,010.000 143,000 1,829,000 Other income 50,000 48,000 Less: COGS 426,000 83,400 2,171,600 Less: Depr. & Amort. Expense -249,000 184,000 632,000 65,000 699,000 -25,000 Less: Other Expenses 206,000 139,000 Goodwill impairment Loss 25,000 Gain on Bond Retirement 24,000 24,000 Income from Starell Corp. 132.660 640,660 $ 22.500 $268,900 $ 155,160 Consolidated Net Income 154,000 S 408,160 655,400 NCI in Net income 17,240 2500 -14,740 Contrelling Interest in NI $271.400 $ 640,660 $ 154,000 $ 425,400 640,660 Statement of Retained Earnings 52.848,950 640,660 Beginning Balance $2,848,950 $457,000 457,000 271,400 154,000 -51.000 560,000 Net Income 640,660 425,400 Less: Dividends Declared Ending Balance 51,000 322,400 61.000 $3.428.610 61.000 3,428,610 $ 882,400 $ Balance Sheet Assets Cash $49,500 $39,000 $88,500 17,750 193,850 676,900 Current Receivables 121,500 90,100 Inventory 317,000 364,900 5,000 1,789,000 1,241,000 2.940,000 518,000 30,000 Land 1.915,000 4,855,000 Buildings & Equipment Less: Accumulated Depreciation Investment in Stargell Stock investment in Stargell Bonds -1,050,000 597,000 -1,647,000 1,243,800 4,860 1,248,660 985,000 985,000 200,000 200,000 nvestment in Posey Bonds Goodwill Total Assets 25,000 25,000 59,860 S 2,456,410 S %2$ 5,847,800 $ 2,530,000 $ 5,981,250 Liabilities & Equity Current Payables $213,000 17750 $894,440 $699,190 200,000 1,200,000 3,000 1,000,000 Bonds Payable Premium on Bonds Payable 3,000 487,000 487,000 910,000 910,000 Common Stock 610,000 610,000 267,000 267,000 Premium on Common Stock Retained Earnings NCI in NA of Stargell Corp Total Liabilities & Equity 3,428,610 138,200 5,981,250 3,428,610 560,000 882,400 322,400 540 138,740 5,847,800 $ 2,530,000 $ 2,857,690 $ 461,140 $ Posev Co. Stargell Corp. DR CR Consolidated Income Statement $801.000 $3,728,000 83,000 145,000 Sales $3,010.000 143,000 1,829,000 Other income 50,000 48,000 Less: COGS 426,000 83,400 2,171,600 Less: Depr. & Amort. Expense -249,000 184,000 632,000 65,000 699,000 -25,000 Less: Other Expenses 206,000 139,000 Goodwill impairment Loss 25,000 Gain on Bond Retirement 24,000 24,000 Income from Starell Corp. 132.660 640,660 $ 22.500 $268,900 $ 155,160 Consolidated Net Income 154,000 S 408,160 655,400 NCI in Net income 17,240 2500 -14,740 Contrelling Interest in NI $271.400 $ 640,660 $ 154,000 $ 425,400 640,660 Statement of Retained Earnings 52.848,950 640,660 Beginning Balance $2,848,950 $457,000 457,000 271,400 154,000 -51.000 560,000 Net Income 640,660 425,400 Less: Dividends Declared Ending Balance 51,000 322,400 61.000 $3.428.610 61.000 3,428,610 $ 882,400 $ Balance Sheet Assets Cash $49,500 $39,000 $88,500 17,750 193,850 676,900 Current Receivables 121,500 90,100 Inventory 317,000 364,900 5,000 1,789,000 1,241,000 2.940,000 518,000 30,000 Land 1.915,000 4,855,000 Buildings & Equipment Less: Accumulated Depreciation Investment in Stargell Stock investment in Stargell Bonds -1,050,000 597,000 -1,647,000 1,243,800 4,860 1,248,660 985,000 985,000 200,000 200,000 nvestment in Posey Bonds Goodwill Total Assets 25,000 25,000 59,860 S 2,456,410 S %2$ 5,847,800 $ 2,530,000 $ 5,981,250 Liabilities & Equity Current Payables $213,000 17750 $894,440 $699,190 200,000 1,200,000 3,000 1,000,000 Bonds Payable Premium on Bonds Payable 3,000 487,000 487,000 910,000 910,000 Common Stock 610,000 610,000 267,000 267,000 Premium on Common Stock Retained Earnings NCI in NA of Stargell Corp Total Liabilities & Equity 3,428,610 138,200 5,981,250 3,428,610 560,000 882,400 322,400 540 138,740 5,847,800 $ 2,530,000 $ 2,857,690 $ 461,140 $
Expert Answer:
Answer rating: 100% (QA)
A Memorandum When preparing consolidated financial statements of a company that has a foreign subsid... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
Students also viewed these accounting questions
-
The cash budget and the budgeted statement of cash flows both provide information about cash. What information about cash is common to these two sources, and what information is unique to the two...
-
Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of...
-
The following questions dealing with the statement of cash flows are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations. The CMA designation...
-
Jorge has investments in two limited partnerships, both of which constitute passive activities. This year, Jorges distributive share of income or loss from each partnership is as follows: In addition...
-
The controller for Eastwood Co. is trying to determine the amount of cash to report on the December 31, 2014 statement of financial position. The following information is provided: 1. A commercial...
-
Built-in oxygen systems contain __________________ designed to refill gaseous oxygen cylinders while they are in place.
-
Familiarize yourself with the California Code of Civil Procedure and the California Rules of Court at www.courts.ca.gov/.
-
The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make jeans is normally distributed with an average of 4000 yards of denim and a standard deviation of...
-
Emily Smith and Russel Barton decided to set up a business selling electronic products online. They registered a proprietary company called ER Electron Pty Ltd on 1 July 2 0 2 2 . The company s...
-
A popular womens fragrance claims much more than merely making the wearer smell nice to the opposite sex. It also promises to make hanging out at bars searching for that special someone unnecessary,...
-
Discuss the role of law in civil ? Discuss Statute law with a suitable example. Need explanation in more than two hundred and also explain reason for the answer IN TEXT FORM Please provide correct...
-
An Australian firm has net receivables of 200,000 SGD in three-months' time as compensation for work undertaken. Current spot rate is AUD/SGD 0.9819/0.9855 Interest rates in Singapore are currently...
-
DigiCom is a new company trying to take market share away from Apple's IPodin the MP3 player market. They are offering the 8gb Lame for $50 each, and the 16gb Lame Plus for $100. Their variable costs...
-
c) Your boss believes that the correct expected return for Telestor equals 0,11. Show how you can put together a portfolio of Oljelund, H20Kraft, Telestor in a way that earns you a risk-free...
-
a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $1,950 for five years. What is the payback period for this investment under the assumption that the cash inflows occur...
-
Regarding the steaks product line. What is the net advantage or disadvantage (change in total company pre-tax profits) of continuing sales of steaks? Should the company be concerned about losing...
-
Using a graphing utility, graph y = cot -1 x.
-
Why would operating in a global (rather than a strictly domestic) marketplace create a need for additional information for managers? Discuss some of the additional information managers would need and...
-
Through its three sets of elements (motivational, informational, and reporting), a CMS focuses the attention of a given decision maker on the data and information that are crucial to that decision...
-
August 2010 inventory and cost data for Petersham Company are as follows: Direct labor .................$182,400 Direct material purchased ............. 196,300 Direct material used...
-
Design a voltage reference source as shown in Figure 9.42 to have an output voltage of \(12.0 \mathrm{~V}\). A Zener diode with a breakdown voltage of \(5.6 \mathrm{~V}\) is available. Assume the...
-
Design an op-amp summer to produce an output voltage of \(v_{O}=3 v_{I 1}+\) \(1.5 v_{I 2}+2 v_{I 3}-4 v_{I 4}-6 v_{I 5}\). The largest resistor value is to be \(250 \mathrm{k} \Omega\).
-
Consider the bridge circuit in Figure P9.87. The resistor \(R_{T}\) is a thermistor with values of \(20 \mathrm{k} \Omega\) at \(T=300 \mathrm{~K}\) and \(21 \mathrm{k} \Omega\) at \(T=350...
Study smarter with the SolutionInn App