Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

تمرين 37

Aedion Company owns control over Breedlove, Inc. Aedion reports sales of $300,000 during 2011 and Breedlove reports $200,000. Inventory costing $20,000 was transferred from Breedlove to Aedion (upstream) during the year for $40,000. Of this amount, 25 percent is still in ending inventory at year-end. Total receivables on the consolidated balance sheet were $80,000 at the first of the year and $110,000 at year-end. No intra-entity debt existed at the beginning or ending of the year. Using the direct approach, what is the consolidated amount of cash collected by the business combination from its customers
A) $430,000.
B) $460,000.
C) $490,000.
D) $510,000.