Cambridge Business Publisher 178 Chapter 31 Consolidated Financial Statements Subsequent to the Date of Acquisition Parent Parent Subsidiary Subsidiary Income statement: Sales............. Cost of goods sold ...... Gross profit......... Equity income....... Operating expenses..... Net income ....... $1,500,000 (900,000) 600,000 $ $6,000,000 (3,500,000) 2,500,000 170,000 (1,000,000) $1,670,000 Balance sheet: Assets .......... $ Cash............... 727,000 Accounts receivable..... 1,000,000 Inventory................ 1,600,000 Equity investment................. 1,873,000 Property, plant and equipment (PPE), net ... 4,800,000 $10,000,000 386,000 348,000 442,000 (400,000) $ 200.000 824,000 $2,000,000 Statement of retained earnings: Beginning retained earnings. . . $1,000,000 Net income................ 1,670,000 Dividends ................. (210,000) Ending retained earnings ..... $2,460,000 $ 780,000 200,000 (32,000) $948,000 Liabilities and stockholders' equity Accounts payable...... Accrued liabilities ...... Long-term liabilities. .... Common stock ....... APIC.............. Retained earnings .. $ 900,000 1,200,000 2,800,000 640,000 2,000,000 2,460,000 $10,000,000 $ 140,000 187,000 500,000 100,000 125,000 948,000 $2,000,000 At what amount will the following accounts appear on the consolidated financial statements? a. Sales f. Property, plant and equipment (PPE), net! b. Equity income g. Goodwill c. Operating expenses h. Common stock d. Accounts receivable i. Retained earnings e, Equity investment Cambridge Business Publisher 178 Chapter 31 Consolidated Financial Statements Subsequent to the Date of Acquisition Parent Parent Subsidiary Subsidiary Income statement: Sales............. Cost of goods sold ...... Gross profit......... Equity income....... Operating expenses..... Net income ....... $1,500,000 (900,000) 600,000 $ $6,000,000 (3,500,000) 2,500,000 170,000 (1,000,000) $1,670,000 Balance sheet: Assets .......... $ Cash............... 727,000 Accounts receivable..... 1,000,000 Inventory................ 1,600,000 Equity investment................. 1,873,000 Property, plant and equipment (PPE), net ... 4,800,000 $10,000,000 386,000 348,000 442,000 (400,000) $ 200.000 824,000 $2,000,000 Statement of retained earnings: Beginning retained earnings. . . $1,000,000 Net income................ 1,670,000 Dividends ................. (210,000) Ending retained earnings ..... $2,460,000 $ 780,000 200,000 (32,000) $948,000 Liabilities and stockholders' equity Accounts payable...... Accrued liabilities ...... Long-term liabilities. .... Common stock ....... APIC.............. Retained earnings .. $ 900,000 1,200,000 2,800,000 640,000 2,000,000 2,460,000 $10,000,000 $ 140,000 187,000 500,000 100,000 125,000 948,000 $2,000,000 At what amount will the following accounts appear on the consolidated financial statements? a. Sales f. Property, plant and equipment (PPE), net! b. Equity income g. Goodwill c. Operating expenses h. Common stock d. Accounts receivable i. Retained earnings e, Equity investment