Hill Company Entered into the Following Inventory Transactions with Its

question 33

Multiple Choice

Hill Company entered into the following inventory transactions with its investees during 2015:
• Sold inventory to Grant Inc.for $150,000.The inventory originally cost Hill $120,000.Grant sold 75% of the inventory during 2015.
• Hill owns 15% of the voting stock of Grant and does not use the equity method to account for the Grant investment.
• Sold inventory to Thornton Inc.for $400,000.The inventory originally cost Hill $320,000.Thornton sold 60% of the inventory during 2015.Hill owns 100% of the voting stock of Thornton.
Which of the following adjustments is not correct with respect to preparing Hill's 2015 consolidated financial statements?

• A)Sales will be decreased $400,000.
• B)Cost of goods sold will be decreased $368,000.
• C)Inventory will be decreased $32,000.
• D)Gross profit will be decreased $110,000.

---

Definitions:

Maintaining Positive Employee Relations

Refers to efforts and strategies that an organization uses to keep its workforce satisfied, engaged, and productive.

Employee Handbooks

A manual or document provided by an employer to its employees, outlining job-related information, company policies, procedures, and working conditions.

Company Policies

Set rules and guidelines created by a business to regulate and direct employees' actions and behaviors in the workplace.

Policies

Formal guidelines or principles that guide decision-making and behaviors within an organization.