Consolidated income statement (intercompany sales correction)
The consolidated income statement of Pul and Swa for 2011 was as follows (in thousands):
|
Sales |
$2,760 |
|
Cost of sales |
(1,840) |
|
Operating expenses |
(320) |
|
Income to 20 percent noncontrolling interest in Swa |
(80 ) |
|
Consolidated net income |
$ 520 |
After the consolidated income statement was prepared, it was discovered that intercompany sales transactions had not been considered and that unrealized profits had not been eliminated. Information concerning these items follows (in thousands):
|
Cost |
Selling Price |
Unsold at Year End |
|
|
2010 Sales—Pul to Swa |
$320 |
$360 |
25% |
|
2011 Sales—Swa to Pul |
180 |
240 |
40 |
Required: Prepare a corrected consolidated income statement for Pul and Swa for the year ended December 31, 2011.