1. COGS-Parent
1,232,000
COGS-Subsidiary
882,000
Total
2,114,000
Intercompany Sales at Billed Price (52500+56000)
(108,500)
Add: Unrealized Profit in Inventory, end.
4,463
Less: Realized Profit in Inventory, beg.
(6,256)
Consolidated COGS
2,003,707 A.
Inventory, Beg.
Inventory, End.
Upstream
6,125 x25%= 1,531.25
5250x25%=1,312.50
Downstream
15,750 x30%=4,725
10,500x30%=3,150
6,256.25
2. Net Income from own operations
GPC (1,540,000-1,232,000-277,500)
BSC (1,102,500-882,000-141,750)
Less: Unrealized Profit in ending inventory
Add: Realized profit in beginning inventory
Consolidated Net Income-2015
3. Consolidated Net Income-2015
Less: NCI’s share in the NI of subsidiary
(78,750-1313+1,531) x 20%
4. Subsidiary’s Net Income
BSC’s Net Income (78,750-1313+1531)
NCI
4,462.5
80,500
78,750
159,250
(4,463)
6,256
161,043 A.
161,043
15,794
145,249 B.
78,968
x 20%
15,794 B.
5. Sales- Entity A
Sales- Entity B
Total Sales
Intercompany Sales
Consolidated Sales-2020
2,000,000
1,000,000
3,000,000
(400,000)
2,600,000 A.
6. Consolidated sales-2020
2,600,000
Consolidated COGS-2020
Consolidated Gross Profit-2020
COGS-A
COGS-B
Intercompany Sales
Consolidated COGS-2020
7. Subsidiary - Gross Profit
UPEI (400,000 x 40% x 30%)
Subsidiary - Income
1,552,000
1,048,000 B.
1,200,000
700,000
(400,000)
72,000
(20,000)
1,552,000
200,000
(72,000)
128,000
NCI in Net Income (128,000 x 40%) = 51,200 C.
8. Gross Profit (500,000 + 200,000) 700,000
Dividend - Parent
(30,000)
670,000
Upstream
Less: UPEI
72,000
Downstream
Add: RPBI
20,000
Consolidated Income
618,000
Less: NCI in NI
51,200
NI
566,800 D.
9. COGS - Parent (35,000 x 79)
2,765,000
COGS - Subsidiary (18,000 x 90)
1,620,000
4,385,000
Less: Consolidated COGS (18,000 x 79)1,422,000
COGS Eliminated 2018
2,963,000 D.
10. 35,000 - 18,000 = 17,000
17,000 x 90 =
17,000 x 79 =
COGS Eliminated 2019
1,530,000
(1,343,000)
187,000 A.
11. Sales of Parent
9,000,000
Sales of Subsidiary
6,000,000
Total
15,000,000
Less: Intercompany sales during
the current period
Consolidated Sales
12. Cost of Sales of Parent
3,000,000
12,000,000 B.
6,250,000
Cost of Sales of Subsidiary
3,000,000
Total
9,250,000
Less: Intercompany Sales
3,000,000
Consolidated Cost of Sales
6,250,000 B.
13. Consolidated Sales
12,000,000
Consolidated COS
(6,250,000)
Consolidated Expense
(3,750,000)
Consolidated Net Income
2,000,000 C.
14. Perth to Regular (third parties) (500,000 - 100,000)
400,000
Dundee to Regular (third parties)(350,000 - 150,000)
200,000
Consolidated Net Income
600,000 C.
15. Perth (31,000 x 130%)
Dundee (36,000 x 110%)
Inventory
23,846
32,727
56,573 A.