Figure 1-1 -Refer to Figure 1-1. Using the Information in the Figure

question 186

Multiple Choice

Figure 1-1
-Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2007 and 2011.

• A) 30%
• B) 50%
• C) 66.7%
• D) 100%

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Definitions:

Consolidated Retained Earnings

The portion of earnings not distributed as dividends but retained by the parent company and its subsidiaries for reinvestment.

Intercompany Sales

Transactions of goods and services between subsidiaries within the same parent company, requiring elimination during consolidation for accurate financial statements.

Effective Tax Rate

The average percentage of net income that a person or corporation pays in taxes, effectively showing the portion of income gone to taxes.

Non-Controlling Interest

A minority share of ownership in a subsidiary that is not directly controlled by the parent company, typically reflected in the equity section of the consolidated financial statement.