Question
The following six accounts appear in the 2018 financial statements of Patricia Co and its 100%-owned subsidiary, Samantha Co (created in 2011), at the end
The following six accounts appear in the 2018 financial statements of Patricia Co and its 100%-owned subsidiary, Samantha Co (created in 2011), at the end of 2018.
Patricia Co Samantha Co
Common stock, 12/31/18 $ 80,000 $ 50,000
Additional paid-in capital, 12/31/18 240,000 160,000
Retained earnings, 12/31/18 490,000 170,000
Dividends declared, 2018 120,000 40,000
Equity in net income of Samantha Co, 2018 50,000 0
Investment in subsidiary, 12/31/18 380,000 0
In addition, Patricia Co's retained earnings account showed $325,000 on 1/1/18.
1. What is Patricia Co own net income in 2018?
2. What is Patricia Co own operating income in 2018?
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Antony Head
5th Edition
0273725343, 978-0273725343
