This Year, Rose Company Acquired All of the Common Stock

question 27

Multiple Choice

This year, Rose Company acquired all of the common stock of Hayley Company. At the end of the current year, balances of selected accounts and other information for each of the companies were as follows: At the end of the year, 50% of the inventory that Rose sold to Hayley remained in Hayley's inventory, and $30,000 of the amount of the sales was unpaid. Rose still owes half of the amount of its purchases to Hayley, but had sold all of the inventory it had acquired from Hayley by the end of the year.
What is the amount of consolidated sales at the end of the year?

• A)$4,216,000
• B)$4,316,000
• C)$4,276,000
• D)$4,246,000

---

Definitions:

Clean Intermittent Catheterizations

A technique for bladder drainage involving the regular insertion of a catheter to empty the bladder, reducing the risk of infection.

Oxybutynin Chloride

A medication used to treat symptoms of overactive bladder, such as frequent or urgent urination, by helping to relax bladder muscles.

Spinal Cord Injury

Damage to the spinal cord that causes a temporary or permanent change in its function, potentially leading to paralysis and other neurologic deficits.