Company A owns 100% or Company B. Company B owns 100% of Company C. Company C owns 100% of Company D. Company A has $500,000 inventory. It sells $50,000 of inventory to Company C, and Company C sells it all for $60,000 to a third-party. Company A sells $50,000 of inventory to Company B, and Company B sells it all to a third-party for $65,000. Company A sells $100,000 of inventory to Company D who sells nothing. What is the dollar amount of inventory on the consolidated financial statements? Company A sells Company B $25,000 of inventory for $50,000. There were no other sales. On a consolidated basis, what are consolidated sales if Company A owns 100% of Company B?

Answer rating: 100% (QA)

i When a holding company sells inventory to 100 subsidiary and such subsidiary sells inventory to th... View the full answer