Question

Rent revenue $6540 Sales discounts $7830 Interest expense 13260 Selling expenses 99710 Beginning retained earnings 114930 Sales revenue 402000 Ending retained earnings 134950 Income tax expense 28702 Dividend revenue 72000 Cost of goods sold 188417 Sales returns and allowances 12740 Administrative expenses 80660 Allocation to noncontrolling interest 19720 From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Wildhorse has allocation to noncontrolling interest of $19720.

Answer 1

Income Statement

Sales Revenue $ 402.000

Sales discounts -$ 7.830

Sales returns and allowances -$ 12.740

Net Revenue $ 381.430

Net Income -$ 22.779

Income attributable to controlling stockholders

Net Income -$ 22.779

Allocation to noncontrolling interest -$ 19.720

Income attributable to controlling stockholders -$ 62.219

Step-by-step explanation:

Total Net revenue it's calculated with the Sales Revenue less Sales discounts and Returns and allowances.

Net Income it's calculated with the total Net Sales minus cost of goods sold, Expenses, Interest and Taxes for a determinated period.

To calculate the income to controlling stockholders it's necessary to subtracted at the end of the statement which they do not own.

Income Statement

Sales Revenue $ 402.000

Sales discounts -$ 7.830

Sales returns and allowances -$ 12.740

Net Sales $ 381.430

Cost of goods sold -$ 188.417

Gross Profit $ 193.013

Administrative Expenses -$ 80.660

Selling Expenses -$ 99.710

Other Income Rent Revenue $ 6.540

Net Income BEFORE Taxes $ 19.183

Interest Expenses -$ 13.260

Net Income BEFORE Taxes $ 5.923

Income Taxes -$ 28.702

Net Income -$ 22.779

Allocation to noncontrolling interest -$ 19.720

Income attributable to controlling stockholders -$ 62.219