Cadion CoOwned a Controlling Interest in Knieval Inc

question 72

Multiple Choice

Cadion Co.owned a controlling interest in Knieval Inc.Cadion reported sales of $420,000 during 2018 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 from its customers?

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

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Definitions:

Efficient Frontier

Efficient Frontier is a concept in modern portfolio theory that refers to a set of investment portfolios that offer the highest expected return for a given level of risk.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns around the mean.

Covariance

A measure indicating the degree to which two variables move in relation to each other.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.