Selected Information from the Separate and Consolidated Balance Sheets and Income

question 10

Essay

Selected information from the separate and consolidated balance sheets and income statements of Palo Alto, Inc.and its subsidiary, Stanford Co., as of December 31, 2016, and for the year then ended is as follows:
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$\begin{array}{lrrr}&\text { Palo Alto }&\text {Stanford }&\text {Consolidated }\\\text { Balance sheet accounts: } & & & \\ \text { Accounts receivable } & \$ 26,000 & \$ 19,000 & \$ 42,000 \\\text { Inventory } & 30,000 & 25,000 & 50,000 \\\text { Investment in Stanford } & 67,000 & - & - \\\text { Stockholders' equity } & 154,000 & 50,000 & 154,000\\\\\text { Income statement accounts: }\\\text { Revenues } & \$ 200,000 & \$ 140,000 & \$ 300,000 \\\text { Cost of goods sold } & 150,000 & 110,000 & 225,000 \\\quad \text { Gross profit } & 50,000 & 30,000 & 75,000 \\& & & \\\text { Equity in earnings of Stanford } & \$ 9,000 & -- & -- \\\quad \text { Net income } & \$ 36,000 & \$ 20,000 & \$ 36,000\end{array}$
Additional information:
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During 2016, Palo Alto sold goods to Stanford at the same markup on cost that Palo Alto uses for all sales.At December 31, 2016, Stanford had not paid for all of these goods and still held 50% of them in inventory.
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Palo Alto acquired its interest in Stanford five years earlier (as of December 31, 2016).
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Required:
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For each of the following items, calculate the required amount.
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a.The amount of intercompany sales from Palo Alto to Stanford during 2016.?
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b.The amount of Stanford's payable to Palo Alto for intercompany sales as of December 31, 2016.?
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c.In Palo Alto's December 31, 2016, consolidated balance sheet, the carrying amount of the inventory that Stanford purchased from Palo Alto.?

Understand the concept of reinforcement value and its role in determining preferences for events according to Rotter.

Comprehend Lewin's field theory, including the impact of force fields on behavior within a given field.

Grasp the significance of cognitive maps and the learning-performance distinction in Tolman's theory.

Differentiate between central and peripheral needs as defined by Lewin and understand the implications for motivation.

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Definitions:

Irrelevant Communicators

Individuals or messages that do not contribute meaningfully to the topic of discussion or communication.

Strategic Family Therapist

A therapist who specializes in strategic family therapy, a form of psychotherapy that addresses specific issues within the family system in a short-term, directive manner.

Symmetrical Communication

A form of communication where all parties have equal power to influence each other, promoting balanced dialogue and exchange.

General Systems Theory

A theoretical framework that studies systems—a set of interconnected parts—as wholes, understanding their principles, organization, and interrelations.