Assume that the subsidiary has some inventory that had been purchased from the parent who earned a
Question:
Assume that the subsidiary has some inventory that had been purchased from the parent who earned a 30% gross profit. Briefly explain whether this fact will increase, decrease or not change the current ratio when preparing the consolidated balance sheet.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (7 reviews)
The current ratio will dec...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781260881295
10th Edition
Authors: Hilton Murray, Herauf Darrell
Question Posted:
Students also viewed these Business questions
-
Assume that the parent has some land that had been purchased from the subsidiary who reported a gain on sale. Briefly explain whether this fact will increase, decrease or not change the...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
MW Canada developed a 90-hour technical training program that was delivered over two months. Because it enabled the loom mechanics to act more independently with less downtime if the total cost was...
-
After the accountant posted the adjusting entries for M. Wally, Designer, the work sheet contained the following account balances on May 31: Required 1. Write the owners name on the Capital and...
-
The balance sheet of Adams Pharmacy after the revenue, expense, and partners' drawing accounts have been closed on December 31, 2016, follows: On that date, Larry Adams, Hazel Adams, and Isiah Adams...
-
Tom Bonacci brought his Jeep to Brewer Service Station to investigate a strange noise the vehicle was making. The Jeep was raised up on an automobile lift so that Brewer employee Paul Gebing could...
-
Operating data for Jacobs Corporation are presented below. Instructions Prepare a schedule showing a vertical analysis for 2014 and 2013. 2014 2013 Sales revenue Cost of goods sold Selling expenses...
-
= 1, 2, 3,.... Problem 3.32. Suppose (xi) 1 C R and xi xi+1 for all i Show that there is an x* = (-, 0] such that x converges to x*. That is {x} x*, though perhaps x* .
-
Access the 2020 consolidated financial statements for Empire Company Limited by going to the investor relations section of the companys website. Answer the questions below. Round percentages to one...
-
Assume that the fair value of the subsidiary at the date of acquisition includes some goodwill. Which of the reporting methods described in this chapter would typically report the lowest debt-to...
-
In Exercises, find the derivative of the function at the given point (a) By approximating the definition of the derivative with small values of h (b) By using a graphing calculator to zoom in on the...
-
Who do you believe is ethically accountable for an organizations behaviorthe organization or its employees? Provide reasons why you answered the way you did.
-
How do post-structuralist and postmodernist perspectives challenge traditional sociological frameworks, particularly in terms of their critiques of essentialism, meta-narratives, and the nature of...
-
How do ecological and environmental sociological perspectives shed light on the interconnectedness between human societies and the natural world, including the socio-political dimensions of...
-
Jenny and Laura are buying food for a meeting. Jenny bought 3 chicken meals and 1 taco meal for $31. Laura bought 3 chicken meals and 2 taco meals for $38. Write a system of linear equations...
-
How do theories of globalization and cosmopolitanism reshape our understanding of social theory, particularly in terms of the increasing interconnectedness of societies and the emergence of new forms...
-
Write the Excel binomial formula for each probability. a. Three successes in 20 trials with a 30 percent chance of success. b. Seven successes in 50 trials with a 10 percent chance of success. c. Six...
-
How many years will it take a $700 balance to grow into $900 in an account earning 5%?
-
Floyd's Specialty Foods Inc. (FSFI) operates over 60 shops throughout Ontario. The company was founded by George Floyd when he opened a single shop in the city of Cornwall. This store sold prepared...
-
Required: (a) What method of accounting would you recommend Magno Industries use for its investment in Grille-to-Bumper Automotive common shares? As part of your answer, discuss the alternatives...
-
Canadian Computer Systems Limited (CCS) is a public company engaged in the development of computer software and the manufacturing of computer hardware. CCS is listed on a Canadian stock exchange and...
-
Discuss the desiderata of effective Business Communication strategy Question Elucidate on the use of technology in the improvement of the communication process. Question Critically examine the...
-
The different NoSQL technologies were created to meet different needs. Choose one of the NoSQL data models and describe it. Explain what kind of applications would benefit from your chosen NoSQL data...
-
Learning Objectives At the end of this exercise, you should be able to: Learning Objective 1 . 5 LO 1 . 5 : Explain the value of studying management. Learning Objective 1 . 4 LO 1 . 4 : Describe the...
Study smarter with the SolutionInn App