Question
I need the Excel formula used and not just the numbers.Please. Part 2: Problem Solving - Consolidated Financials Assume that on 1/1/X0, a parent company
I need the Excel formula used and not just the numbers.Please.
Part 2: Problem Solving - Consolidated Financials Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at $480,000 over book value. The excess is assigned as follows: Asset Fair Value Useful Life Patent $320,000 8 years Goodwill 160,000 Indefinite 70% of the goodwill is allocated to the parent. Included in the attached Excel spreadsheet are the pre-consolidation financial statements for both the parent and the subsidiary.
ACT470-Portfolio-Option 1 | |||||||
Consolidation Entries | |||||||
Parent | Subsidiary | Dr | Cr | Consolidated | |||
Income Statement: | |||||||
Sales | 6,000,000 | 2,000,000 | 0 | ||||
Cost of Goods sold | (4,000,000) | (1,200,000) | 0 | ||||
Gross profit | 2,000,000 | 800,000 | 0 | ||||
Income (loss) from subsidiary | 112,000 | 0 | |||||
Operating expenses | (1,500,000) | (600,000) | 0 | ||||
Net Income | 612,000 | 200,000 | 0 | ||||
Consolidated NI attrib to NCI | 0 | ||||||
Consolidated NI attrib to CI | 0 | ||||||
Statement of Ret Earnings: | |||||||
BOY retained earnings | 1,978,000 | 970,000 | 0 | ||||
Net income | 612,000 | 200,000 | 0 | ||||
Dividends | (190,000) | (100,000) | 0 | ||||
EOY retained earnings | 2,400,000 | 1,070,000 | 0 | ||||
Balance Sheet: | |||||||
Cash | 200,000 | 120,000 | 0 | ||||
Accounts receivable | 600,000 | 400,000 | 0 | ||||
Inventory | 800,000 | 880,000 | 0 | ||||
Equity investment | 1,400,000 | 0 | |||||
PPE, net | 2,000,000 | 1,200,000 | 0 | ||||
Patent | 320,000 | 0 | |||||
Goodwill | 480,000 | 0 | |||||
5,800,000 | 2,600,000 | 0 | |||||
Current liabilities | 500,000 | 200,000 | 0 | ||||
Long-term liabilities | 1,100,000 | 600,000 | 0 | ||||
Common stock | 600,000 | 280,000 | 0 | ||||
APIC | 400,000 | 450,000 | 0 | ||||
Retained earnings | 2,400,000 | 1,070,000 | 0 | ||||
Noncontrolling interest | 0 | ||||||
5,000,000 | 2,600,000 | 0 | 0 | 0 |
I need the Excel formula used and not just the numbers.Please.
The answers are below but need to know how to get the calculation
Consolidation Entries Parent Subsidiary Cr. Consolidated Income Statement: Sales 8,000,000 Cost of Goods sold 6,000,000 -4,000,000 2,000,000 2,000,000 -1,200,000 800,000 -5,200,000 Gross profit 2,800,000 112,000 112,000 Income (loss) from subsidiary Operating expenses [D] | 40,000 -2,140,000 -1,500,000 612,000 -600,000 200,000 Net Income 660,000 Consolidated Nl attrib to NCI [C] 48,000 -48,000 Consolidated Nl attrib to CI 612,000 Statement of Ret Earnings: BOY retained earnings 1,978,000 970,000 [E] 970,000 1,978,000 Net income 612,000 200,000 612,000 Dividends -190,000 -100,000 [C] 100,000 -190,000 EOY retained earnings 2,400,000 1,070,000 2,400,000 Dalalle JulCel. Cash 200,000 120,000 320,000 Accounts receivable 600,000 400,000 1,000,000 Inventory 800,000 880,000 1,680,000 0 Equity investment 1,400,000 [C] 42,000 [E] 1,190,000 [A] 168,000 PPE, net 2,000,000 1,200,000 3,200,000 Patent [D] 40,000 40,000 80,000 160,000 Goodwill [A] 160,000 $5,000,000 $2,600,000 $6,400,000 Current liabilities 500,000 200,000 700,000 Long-term liabilities 1,100,000 600,000 1,700,000 Common stock 600,000 280,000 [E] 280,000 600,000 APIC 400,000 450,000 [E] 450,000 400,000 Retained earnings 2,400,000 1,070,000 2,400,000 Noncontrolling interest IGI 18 000 600.000 Retained earnings 2,400,000 1,070,000 2,400,000 Noncontrolling interest [C] 18,000 600.000 510,000 [A] 72,000 $5,000,000 $2,600,000 $2,140,000 $2,140,000 $6,400,000 Consolidation Entries Parent Subsidiary Cr. Consolidated Income Statement: Sales 8,000,000 Cost of Goods sold 6,000,000 -4,000,000 2,000,000 2,000,000 -1,200,000 800,000 -5,200,000 Gross profit 2,800,000 112,000 112,000 Income (loss) from subsidiary Operating expenses [D] | 40,000 -2,140,000 -1,500,000 612,000 -600,000 200,000 Net Income 660,000 Consolidated Nl attrib to NCI [C] 48,000 -48,000 Consolidated Nl attrib to CI 612,000 Statement of Ret Earnings: BOY retained earnings 1,978,000 970,000 [E] 970,000 1,978,000 Net income 612,000 200,000 612,000 Dividends -190,000 -100,000 [C] 100,000 -190,000 EOY retained earnings 2,400,000 1,070,000 2,400,000 Dalalle JulCel. Cash 200,000 120,000 320,000 Accounts receivable 600,000 400,000 1,000,000 Inventory 800,000 880,000 1,680,000 0 Equity investment 1,400,000 [C] 42,000 [E] 1,190,000 [A] 168,000 PPE, net 2,000,000 1,200,000 3,200,000 Patent [D] 40,000 40,000 80,000 160,000 Goodwill [A] 160,000 $5,000,000 $2,600,000 $6,400,000 Current liabilities 500,000 200,000 700,000 Long-term liabilities 1,100,000 600,000 1,700,000 Common stock 600,000 280,000 [E] 280,000 600,000 APIC 400,000 450,000 [E] 450,000 400,000 Retained earnings 2,400,000 1,070,000 2,400,000 Noncontrolling interest IGI 18 000 600.000 Retained earnings 2,400,000 1,070,000 2,400,000 Noncontrolling interest [C] 18,000 600.000 510,000 [A] 72,000 $5,000,000 $2,600,000 $2,140,000 $2,140,000 $6,400,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started