Reference no: EM133043097
Question - R acquired a subsidiary, H, during the year. Summaries information from the Consolidated Statement of Profit and Loss and Balance Sheet is provided, together with some supplementary information.
Consolidated Statement of Profit and Loss
Amount ($)
Revenue 3,80,000
Cost of sales (2,20,000)
Gross profit 1,60,000
Depreciation (30,000)
Other operating expenses (56,000)
Interest cost (4,000)
Profit before taxation 70,000
Taxation (15,000)
Profit after taxation 55,000
Consolidated balance sheet 2020 2019
Assets
Cash and cash equivalents 8,000 5,000
Trade receivables 54,000 50,000
Inventories 30,000 35,000
Property, plant and equipment 1,60,000 80,000
Goodwill 18,000 -
Total assets 2,70,000 1,70,000
Liabilities
Trade payables 68,000 60,000
Income tax payable 12,000 11,000
Long term debt 1,00,000 64,000
Total Liabilities 1,80,000 1,35,000
Shareholders' equity 90,000 35,000
Total liabilities and shareholders' 2,70,000 1,70,000
Other information - All of the shares of entity H were acquired for 74,000 in cash. The fair values of assets acquired and liabilities assumed were:
Amount ($)
Inventories 4,000
Trade receivables 8,000
Cash 2,000
Property, plant and equipment 1,10,000
Trade payables (32,000)
Long term debt (36,000)
Goodwill 18,000
Cash consideration paid 74,00
Required - Prepare the Consolidated Statement of Cash Flows for the year 2020?