Operating profit: Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT). Consolidated Operating profits: Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies. Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Why isn’t the total operating profit of all reportable segments normally equal to the consolidated operating profit?

How do gross profits, operating income, and net income differ?

How much is the consolidated profit?

Answer 2

Question

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Answer 6

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Answer 7

Chapter 12, Problem 4UTI

To determine

Operating profit:

Operating profits are the profits earned out of the core business operation. Any profits earned out of the investments made are not included. Operating profit is also called as Earnings before interest and taxes (EBIT).

Consolidated Operating profits:

Consolidated Operating profits are prepared to show the consolidated profits of parent company and subsidiary company together to show the combined profits of all parent and subsidiary companies.

Reason behind reportable segment’s total operating profit not being equal to the consolidated operating profit.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 12 - Prob. 1UTI Ch. 12 - Prob. 2UTI Ch. 12 - Prob. 3UTI Ch. 12 - Prob. 4UTI Ch. 12 - Prob. 1.1E Ch. 12 - Prob. 1.2E Ch. 12 - Prob. 1.3E Ch. 12 - Prob. 1.4E Ch. 12 - Prob. 1.5E Ch. 12 - Prob. 1.6E

Solution Summary: The author explains that operating profits are the profits earned out of the core business operation. Consolidated Operating profits show the combined profits of all parent and subsidiary companies.

Want to see the full answer?

Chapter 12 Solutions