Illustrations of retained profits brought forward, Financial Accounting

Assignment Help:

Illustrations of retained profits brought forward

H Ltd acquired 75% of the ordinary shares of S Ltd since S Ltd was incorporated. The Summarized income statement for the two companies for the year ending 31 December

20X2 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

H Ltd

S Ltd

 

 

 

 

£

£

Sales revenue

 

 

     75,000.00

            38,000.00

Cost of sales

 

 

 

    (30,000.00)

          (20,000.00)

Gross profit

 

 

 

     45,000.00

            18,000.00

Operating expenses

 

 

    (14,000.00)

            (8,000.00)

Profit before  tax

 

 

      31,000.00

            10,000.00

Taxation

 

 

 

    (10,000.00)

            (2,000.00)

Profit after tax

 

 

      21,000.00

              8,000.00

Retained profit b/f

 

 

     87,000.00

            17,000.00

Retained profit c/f

 

 

    108,000.00

            25,000.00

 

 

 

 

 

 

Required:

 

 

 

 

 

Prepare the consolidated income statement for the year ended 31 December 20X2.

 

H Ltd. And Its Subsidiary

Consolidated Income Statement for year ended 31/12/2002

 

£ ‘000’

£ ‘000’

Revenue(75+38)

 

113

Cost of sales(30+20)

 

(50)

Gross profit

 

63

Operating expenses(14+8)

 

22

Profit before tax

 

41

Income tax expense(10+2)

 

(12)

Profit after tax

 

29

Profit attributable to minority interest

 

(2)

Profit attributable to holding company

 

27

Retained profits b/f

 

  99.75

Retained profit b/f

 

126.75


Related Discussions:- Illustrations of retained profits brought forward

What about a foreign-based multinational corporation, Does a state have the...

Does a state have the authority to require a U.S.-based multinational corporation to compute its state taxable income on a worldwide combined reporting basis? What about a foreign-

Calculate the financial ratios, Part I: Wal-Mart Stores Inc.'s income stat...

Part I: Wal-Mart Stores Inc.'s income statement and balance sheet are attached. Gather relevant information from the financial statements to calculate the financial ratios, and co

What do you mean by inflation, Q. What do you mean by Inflation? Predic...

Q. What do you mean by Inflation? Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be under

Prepare three years of monthly cash budgets for company, 1. Prepare three y...

1. Prepare three years of monthly cash budgets, yearly income statements, and yearly balance sheets for the jewelry business Daisy & Company. General Information: 1. Th

What is bargain purchase, What is bargain purchase? Financial assets a...

What is bargain purchase? Financial assets acquired for less than FMV. In a bargain purchase BC, a corporate entity is acquired by another for an amount that is less than the

Hat is the after-tax cash flow from the salvage value, 48 Morgado Inc. has ...

48 Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $130,000 Annual cash receipts $78,000 Life of th

State the benefits of accounting information, State the Benefits of account...

State the Benefits of accounting information Benefits of accounting information ultimately decline. Cost of providing information, though, will rise with every additional piec

Different powers of investment-trust laws and accounts , Powers of investme...

Powers of investment 1. Shares and debentures:  A trustee may: Invest in bearer securities if these would otherwise be authorised;    Acquiesce in an amalgamation

Covenants, what is a maximum leverage ratio covenant designed to control

what is a maximum leverage ratio covenant designed to control

Closing entries, Closing Entries: Expenses Below is a list of accounts with...

Closing Entries: Expenses Below is a list of accounts with corresponding ending balances. Account: Account Balance a.Insurance Expense: $1,300 b.Cash: 750 c.Accounts Receivable: 4,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd