Question

Presented below are certain account balances of Martinez Products Co.

Rent revenue $6,610 Sales discounts $7,930
Interest expense 13,420 Selling expenses 99,440
Beginning retained earnings114,500 Sales revenue 410,000
Ending retained earnings 134,260 Income tax expense 28,935
Dividend revenue 71,490 Cost of goods sold 179,854
Sales returns and allowances 12,560 Administrative expenses 75,280
From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) dividends declared, and (d) income attributable to controlling stockholders, if Martinez has allocation to noncontrolling interest of $19,240.
(a) Total net revenue $
1.Presented below are certain account balances of
(b) Net income $
1.Presented below are certain account balances of
(c) Dividends declared $
1.Presented below are certain account balances of
(d) Income attributable to controlling stockholders $
1.Presented below are certain account balances of

Answer 1

a. Total net revenue:

= Sales revenue - Sales discounts - Sales returns + Rent revenue + Dividend revenue

= 410,000 - 7,930 - 12,560 + 6,610 + 71,490

= $467,610

b. Net income:

= Total net revenue - Cost of goods sold - Interest expense - selling expenses - income tax expense - administrative expenses

= 467,610 - 179,854 - 13,420 - 99,440 - 28,935 - 75,280

= $70,681

c. Dividends declared:

= Beginning Retained earnings + Net income - Ending Retained earnings

= 114,500 + 70,681 - 134,260

= $50,921

d. Income attributable to controlling shareholders:

= Net income - non-controlling interest:

= 70,681 - 19,240

= $51,441