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 .