Proman Manufacturing owns a 90% interest in Sipp Company,purchased at a time when the book values of Sipp's recorded assets and liabilities were equal to fair values.During 2011,Sipp sold merchandise to Proman for $80,000 at a 20% gross profit.At December 31,2011,25% of this merchandise is still in Proman's inventory.Separate incomes for Proman and Sipp are summarized as follows:
Required: Prepare a consolidated income statement for 2011 for Proman and subsidiary.
Definitions:
Spending Variance
The difference between the actual amount of money spent and the budgeted amount expected to be spent.
Food And Supplies
Items necessary for the operation of a service, especially in the hospitality and retail industries, including edible products and necessary equipment.
Tenant-Days
A metric used in property management to calculate the total number of days tenants occupy a space within a given period.
Net Operating Income
The income generated from normal business operations after deducting operating expenses but before taxes and interest.
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