Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This year, Rose Company acquired all of the common stock of Hayley. At the end of the current year, balances of selected accounts and other

This year, Rose Company acquired all of the common stock of Hayley. At the end of the current year, balances of selected accounts and other information for each of the companies were as follows: Rose Hayley Sales 2582,000 1734,000 Account Receivable 580,000 235,000 Sales to Hayley during the year 80,000 Sales to Rose during the yea. 20,000 Gross profit on sale 25% 30% At the end of the year, 50% of the inventory that Rose sold to Hayley remained in Haylays inventory, and $30,000 of the amount of the sales was unpaid. Rose still owes half of the amount of its purchases to Haylay, but had sold all of the inventory it had acquired from Hayley by the end of the year. What the amount of consolidated sales at end of the year? a. 4,216,000 b. 4,316,000 c. 4,276,000 d. 4,246,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

6th Canadian edition

013257084X, 1846589207, 978-0132570848

More Books

Students also viewed these Accounting questions

Question

How can the explanatory variables be checked for collinearity?

Answered: 1 week ago