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23 July, 19:36

Presented below are certain account balances of Paczki Products Co.

Rent revenue $6,500 Sales discounts $7,800

Interest expense 12,700 Selling expenses 99,400

Beginning retained earnings 114,400 Sales revenue 390,000

Ending retained earnings 134,000 Income tax expense 31,000

Dividend revenue 71,000 Cost of goods sold 184,400

Sales returns and allowances 12,400 Administrative expenses 82,500

Allocation to noncontrolling interest 17,000

From the foregoing, compute the following:

(a) Total net revenue $

(b) Net income $

(c) Dividends declared $

(d) Income attributable to controlling stockholders $

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  1. 23 July, 20:24
    0
    (a) $447,300

    (b) $37,300

    (c) - $17,700

    (d) $20,300

    Explanation:

    Total net revenue:

    = sales revenue - Sales discounts - Sales returns and allowances + Rent revenue + Dividend revenue

    = 390,000 - $7,800 - 12,400 + $6,500 + 71,000

    = $447,300

    Net income:

    = Total net revenue - Cost of goods sold - Administrative expenses - Selling expenses - Interest expense - Income tax expense

    = $447,300 - $184,400 - $82,500 - $99,400 - $12,700 - $31,000

    = $37,300

    Ending retained earnings = Beginning retained earnings + Net income - Dividend

    134,000 = 114,400 + $37,300 - Dividend

    Dividend = - $17,700

    Income attributable to controlling stockholders:

    = Net income - Allocation to non-controlling interest

    = $37,300 - $17,000

    = $20,300
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