Aedion Company owns control over Breedlove, Inc. Aedion reports sales of $300,000 during 2011 and Breedlove reports

Question:

Aedion Company owns control over Breedlove, Inc. Aedion reports sales of $300,000 during 2011 and Breedlove reports $200,000. Inventory costing $20,000 was transferred from Breedlove to Aedion (upstream) during the year for $40,000. Of this amount, 25 percent is still in at year-end. Total receivables on the consolidated were $80,000 at the first of the year and $110,000 at year-end. No intra-entity debt existed at the beginning or ending of the year.
Using the direct approach, what is the consolidated amount of cash collected by the business combination from its customers?
a. $430,000.
b. $460,000.
c. $490,000.
d. $510,000.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...