Philips has a 50% joint operation interest in Josef. Based on the following information, what amount will be presented for current assets on Philips' proportionately consolidated balance sheet?

Question

Quizplus · Accepted Answer

The current assets of Josef equal $1,550 (cash of $800 + receivables of $450 + inventory of $300). Philips has a 50% joint operation interest in Josef, so their proportionate share of the current assets is $775 ($1,550 x 50%). Therefore, $775 will be presented for current assets on Philips' proportionately consolidated balance sheet.

Philips Has a 50% Joint Operation Interest in Josef