Cadion Co Owned a Controlling Interest in Knieval Inc

question 70

Multiple Choice

Cadion Co. owned a controlling interest in Knieval Inc. Cadion reported sales of $420,000 during 2011 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:

Republican Motherhood

A concept in early American society which held that women played an important role in teaching their children republican values, thus contributing to the nation’s success.

Educational Opportunities

The availability and accessibility of options for learning and schooling across various levels and communities.

Ideology

A system of ideas, beliefs, and values that forms the basis of a social, economic, or political philosophy or program.

Training Future Citizens

The process of educating and instilling civic values in young people to prepare them for responsible participation in society.