sheet 1 Equity method Dividend Receivable Investment in

sheet 1
Equity method
Dividend Receivable
Investment in Sub
25000 x .75
Cash
Elimination entries
Investment
Dividend
Investment income
?
I think I am doing this incorrectly
a.
b.
c.
Net Income would decrease because the COGS
is higher than the revenue?
I think current assets would be reduced but how much?
Net working capital would be reduced? but how?
Page
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$60000.00
0.75
80000.00
$60000.00
0.75
80000.00
sheet 1
Equity method
Dividend Receivable
Investment in Sub
25000 x .75
Cash
Elimination entries
Investment
Dividend
Investment income
?
I think I am doing this incorrectly
a.
b.
c.
Net Income would decrease because the COGS
is higher than the revenue?
I think current assets would be reduced but how much?
Net working capital would be reduced? but how?
Page
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$18750.00
0.75
25000.00
$60000.00
0.75
80000.00
$60000.00
0.75
80000.00

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