Cadion Co Owned a Controlling Interest in Knieval Inc

question 73

Multiple Choice

Cadion Co. owned a controlling interest in Knieval Inc. Cadion reported sales of $420,000 during 2013 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 combination from its customers?

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

---

Definitions:

Job Characteristics Model

A framework that proposes five core job dimensions, leading to high levels of job satisfaction, motivation, and performance.

Core Job Characteristics

Refers to fundamental attributes that affect job satisfaction and performance, including task variety, task identity, task significance, autonomy, and feedback.

Psychological States

Conditions of the mind impacting thoughts, feelings, and behaviors, which can be influenced by various internal and external factors.

Individual-Level

Pertaining to or focusing on singular entities such as a person or a specific role within a broader system.