1. Wilco has Sales Revenue of $1.000,000 and COGS of $700,000 in 2022 along with an ending balance of inventory of $76,000 and an inventory turnover of 10. Wilco projects sales will grow by 20% In 2023 and that their COGS to Sales Revenue percentage and inventory turnover will remain steady. What is Wilco's projected average balance of inventory in 2023?

2. The change in cash from one year to the next on the balance sheet should directly articulate with the cash flows provided by operations on the statement of cash flows.

True or false

3. Wilco acquires an 80% interest in Seminole Corporation on January 1, 2022, for $1,600,000. The book value of Seminole's Identifiable net assets at that date was $1,800,000. One depreciable asset (4-year life) had a fair value that exceeded its book value by $80,000. Seminole reports $200,000 of net income in 2022 and paid $80,000 in dividends. What is the non-controlling interest in net income for 2022?

answer choices:

36,000

32,000

24,000

40,000

my work so far:

Non controlling int net inc = net income * non-control %

= 200,000 * .20

= 40,000

(200,000*.2)=440000

(Ni * 1-%)- (depr*1-%)

20,000=80,000/4

= bv/ years

4. Wilco revalues its marketable debt securities to fair-value in the most recent reporting period. This transaction flows into other comprehensive income. Which of the following methods to account for changes in value would Wilco use for this transaction?

recognize changes in value on the balance sheet when they occur over time, but delay recognition of changes in value on the income statement until realized in a market transaction

recognize changes in value on the income statement when they occur over time, but delay recognition of changes in value on the balance sheet until realized in a market transaction

recognize changes in value on the balance sheet and income statement when they occur over time even if they are not realized in a market transaction

recognize changes in value on the balance sheet and income statement when realized in a market transaction

5. Indicate whether it would generate a temporary or permanent tax difference:

Use of different depreciation methods for financial reporting and tax reporting purposes- temporary?

The incurrence of fines for late tax payments- permanent?

The payment of monies as prepayment for services to be received in future periods- temporary?

The receipt of nontaxable interest- permanent?

The recognition of warranty expense using the allowance method- temporary?