Select the formula needed to compute the amount and then enter the amounts to calculate the answer
Requirement 3. Compute the average stockholders ' equity.
Select the formula needed to compute the amount and then enter the amounts to calculate the answer
Requirement 4. Compute the asset turnover, using two different approaches.
Select the formula needed to compute the amount under the first approach and then enter the amounts to calculate the answer
Now, we can compute the asset turnover using a different approach Select the formula needed to compute the amount under the second approach and then enter the amounts to calculate the answer. Use amounts you have calculated above and amounts given to answer this part of the requirement
E17-30( similar to) Houston Oil Company( the parent) acquired 100 % of the common stock of Hot Top Development( the subsidiary) for $ 475,000 on January 2, 20X1. Their financial statements follow: Requirement 1. What would be Houston Oil ' s net income for 20X1 if it had not purchased the Hot Top Development stock?
Requirement 2. After acquiring the Hot Top Development stock, Houston Oil prepared its income statement by showing its claim to Hot Top ' s income as part of " other income." Prepare a consolidated income statement for 20X1 and a consolidated balance sheet as of December 31, 20X1. Use the balance-sheet-equation format for the latter.