Lauralee, inc. owns a 30% interest in eastwood co., giving it representation on the investee’s board of directors. at the beginning of the year, the equity investment was carried on lauralee’s balance sheet at $500,000. during the year, eastwood reported net income of $250,000 and paid lauralee a dividend of $50,000. in addition, lauralee sold inventory to eastwood, recording a gross profit of $20,000 on the sale. at the end of the year, 50% of the merchandise remained unsold by eastwood.

required:
a. prepare the equity method journal entry to defer the unrealized inventory gross profit.
b. how much equity income should lauralee report from eastwood during the year?
c. what is the balance in the equity investment at the end of the year?

Acompany's income statement showed the following: net income, $145,000 and depreciation expense, $36,300. an examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,500; merchandise inventory increased $22,200; and accounts payable increased $5,500. calculate the net cash provided or used by operating activities. $209,500 $139,000 $176,100 $186,500 $142,100

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

The petty cash fund has a current balance of $ 350, which is the established fund balance. based on activity in the fund, it is determined that the balance needs to be changed to $ 450. which journal entry is needed to make this change?