Exercise 4-3 Your answer is partially correct. Try again. Presented below are ce

Question

Exercise 4-3 Your answer is partially correct. Try again. Presented below are certain account balances of Stellar Products Co. Rent revenue Interest expense Beginning retained earnings Ending retained earnings Dividend revenue Sales returns and allowances $6,510 13,340 114,860 134,870 71,020 12,900 Sales discounts Selling expenses Sales revenue Income tax expense Cost of goods sold Administrative expenses $8,390 99,470 401,600 24,627 174,271 80,940 From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Stellar has allocation to noncontrolling interest of $17,960. (a) Total net revenue 457840 (b) Net income (c) Income attributable to controlling stockholders

Explanation / Answer

a) Total net revenue = Net Sales revenue+Rent revenue+Dividend revenue

= (Sales revenue-Sales discounts-Sales returns and allowances)+Rent revenue+Dividend revenue

= ($401,600-$8,390-$12,900)+$6,510+$71,020

= $380,310+$6,510+$71,020 = $457,840

b) Total expenses (incuding interest and income tax)

= Cost of goods sold+Selling exp+Administration exp+Interest exp+Income tax exp

= $174,271+$99,470+$80,940+$13,340+$24,627 = $392,198

Net Income = Total net revenue - Total expenses (incuding interest and income tax)

= $457,840 - $392,198 = $65,642

c) Income attributable to controlling interest = Net Income - Income to non controlling interest

= $65,642 - $17,960 = $47,682

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