A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in merchandise purchased from the parent in its beginning inventory. During the current year, the subsidiary paid the parent $720,000 for merchandise, and sold merchandise purchased from the parent to outside customers for $870,000. At year-end, the subsidiary has $180,000 in merchandise purchased from the parent in its ending inventory.
Requirements 
What is consolidated sales revenue for the year?

Answer rating: 100% (QA)

To determine the consolidated sales revenue for the year we need to consider the sales made by ... View the full answer