Assignment:
Question 1. Choco Company owns 70% of the common stock of Allie, Inc. In the current year, Choco reports sales of $12,000,000 and cost of goods sold of $9,600,000. For the same period, Allie has sales of $560,000 and cost of goods sold of $360,000. During the year, Choco sold merchandise to Allie for $80,000 at a price based on the normal markup. At the end of the year, Allie still possesses 40 percent of this inventory.
a. Compute consolidated sales.
b. Compute the gross profit rate
c. Compute consolidated cost of goods sold.