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Amount for consolidated financial statements

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Reference no: EM13115854

Shine Corporation purchased 30 percent of the common stock of Ash Corporation on January 1, 2007, at $28,000 in excess of underlying book value. The excess is attributable to equipment with a remaining useful life of 2 years. The companies reported the following operating results and dividends for the three years following the date of purchase:

    Shine   Ash
Year   Operating Income    Dividends    Net Income    Dividends
2007   1,000,000   130,000   400,000   40,000
2008   960,000   140,000   300,000   40,000
2009   1,200,000   140,000   500,000   22,000
Barnes Company acquired 80% of the outstanding voting stock of Dean Company on January 1, 2008. During 2008 Dean Company sold inventory costing $50,000 to Barnes Company for $80,000. Barnes Company continued to hold the inventory at December 31, 2008. Also during 2008, Barnes Company sold merchandise costing $400,000 to nonaffiliates for $600,000, and on its separate balance sheet reported total inventory at year end of $140,000. In its separate financial statements, Dean Company reported total sales and cost of goods sold of $350,000 and $220,000, respectively, for 2008 and ending inventory of $50,000.
Required: Based on the above information, compute the amounts that should appear in the consolidated financial statements prepared for Barnes Company and it subsidiary, Dean Company, at year end for the following items: 1) sales; 2) cost of goods sold; 3) gross profit on sales; 4) inventory.

Reference no: EM13115854

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