Norman Ltd How Much Is the Non-Controlling Interest Adjusted for Its Share

question 3

Multiple Choice

Norman Ltd. owns 60% of the outstanding common shares of Arnie Ltd. During 2013, sales from Arnie to Norman were $200,000. Merchandise was priced to provide Arnie with a gross margin of 20%. Norman's inventories contained $40,000 at December 31, 2012 and $15,000 at December 31, 2013 of merchandise purchased from Arnie. Cost of goods sold for Norman and Arnie for 2013 on their separate-entity income statements were as follows: $\begin{array}{|l|r|r|} \hline& \text { Norman } & \text { Arnie } \\\hline \text { Beginning inventory } & \$ 100,000 & \$ 50,000 \\\hline \text { Purchases } & 700,000 & 200,000 \\\hline \text { Ending inventory } & (110,000) & (55,000) \\\hline \text { Cost of goods sold } & \$ 690,000 & \$ 195,000 \\\hline\end{array}$ How much is the non-controlling interest adjusted for its share of the consolidated net income for the year ended December 31, 2013?

• A)$3,000.
• B)$5,000.
• C)$1,250.
• D)$2,000.

Differentiate between various single-phase motor types based on their starting and running components.

Comprehend the role and limitations of the start capacitor and centrifugal switch in single-phase motors.

Understand the basic principles and functioning of electric induction motors.

Recognize the significance of synchronous and asynchronous speeds in induction motors.

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Definitions:

Net Decrease

A reduction in the quantity or value of something, calculated by subtracting the final figure from the initial figure.

Inventories

Quantities of goods that are held by a company for the purpose of resale or production.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to arrive at operating cash flow.

Accounts Receivable

Funds that clients or customers owe to a company for products or services delivered but not yet compensated for.