Premier Company owns 90 percent of the voting shares of Stanton, Inc. Premier reports sales of $480,000

Question:

Premier Company owns 90 percent of the voting shares of Stanton, Inc. Premier reports sales of $480,000 during 2014 and Stanton reports $264,000. Stanton sold inventory costing $28,800 to Premier (upstream) during the year for $57,600. Of this amount, 25 percent is still in at year-end. Total receivables on the consolidated were $81,800 at the first of the year and $119,100 at year-end. No intra-entity debt existed at the beginning or ending of the year. Using the direct method, what is the consolidated amount of cash collected by the business combination from its customers?
a. $706,700.
b. $649,100.
c. $686,400.
d. $744,000.

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...