Question

Current Attempt in Progress Presented below are certain account balances of Waterway Products Co. $7,330 $7,830 Rent revenue Sales discounts Interest expense 13,350 Selling expenses 99,800 Sales revenue Beginning retained earnings 114,830 403,200 Income tax expense Ending retained earnings 134,910 27,939 Dividend revenue Cost of goods sold 71,580 202,594 Administrative expenses 12,740 Sales returns and allowances 87,720 19,880 Allocation to noncontrolling interest From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Waterway has allocation to noncontrolling interest of $19,880. $ (a) Total net revenue $ (b) Net income $ (c) Income attributable to controlling stockholders

Answer 1

a)

Sales revenue	403,200
Sales discount	- 7,830
Sales returns and allowances	- 12,740
Net sales revenue	382,630
Rent revenue	7,330
Dividend revenue	71,580
Total net revenue	$461,540

b)

Total net revenue	461,540
Expenses:
Cost of goods sold	- 202,594
Selling expense	- 99,800
Administrative expense	- 87,720
Interest expense	- 13,350
Income tax expense	- 27,939
Net income	$30,137

c)

Income attributable to controlling stockholders = Net income - Allocation to non controlling interest

= 30,137 - 19,880

= $10,257

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