During 20X3, Park Corp. recorded $500,000 in sales of inventory to Small Co., its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31, 20X3, Small held one-fifth of these goods in its inventory. The following information pertains to Park and Small's sales for 20X3. Park Small
Sales $2,000,000 $1,400,000
Cost of sales $800,000 $700,000
Gross profit $1,200,000 $700,000
In its 20X3 consolidated income statement, what amount should Park report as cost of sales?
a. $1,060,000
b. $1,100,000
c. $1,260,000
d. $1,500,000
a. $1,060,000

Burnley and co., a graphic design firm, has offices in new york, texas, california, new mexico, and new jersey. each of these offices is headed by a president who reports directly to emma burnley, the ceo. the heads of the centralized hr, finance, and marketing teams report to emma burnley as well. managers in the various offices also report to the ceo directly. based on this information, which of the following statements is most likely to be true? a) emma burnley has a wide span of control. b) burnley and co. has a tall hierarchical structure. c) emma burnley is underworked. d) burnley and co. is a mechanistic organization.