Cadion Co Owned a Controlling Interest in Knieval Inc

question 73

Multiple Choice

Cadion Co. owned a controlling interest in Knieval Inc. Cadion reported sales of $420,000 during 2013 while Knieval reported $280,000. Inventory costing $28,000 was transferred from Knieval to Cadion (upstream) during the year for $56,000. Of this amount, twenty-five percent was still in ending inventory at year's end. Total receivables on the consolidated balance sheet were $112,000 at the first of the year and $154,000 at year-end. No intra-entity debt existed at the beginning or ending of the year. Using the direct approach, what is the consolidated amount of cash collected by the business combination from its customers?

• A) $602,000.
• B) $644,000.
• C) $686,000.
• D) $714,000.
• E) $592,000.

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Definitions:

Phenotypes

The set of observable characteristics or traits of an organism resulting from the interaction of its genotype with the environment.

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A field of science dedicated to understanding and preserving Earth's biodiversity and the habitats of various species through conservation practices.

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the process of bringing something back to its original state by repairing or cleaning it.