Alice plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements
Question:
Alice plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements of the two companies for the year ended on 31 December are as follows
Required:
Prepare the consolidated (group) income statement for Alice plc and its subsidiary for the year ended 31 December.
Transcribed Image Text:
Income statements for the year ended 31 December Alice plc m Baker plc m Revenue 83 47 Cost of sales (36) (19) Gross profit 47 Administration expenses (14) Distribution expenses (21) Profit before taxation 12 Taxation Profit for the year (4) 8 9x9= 9 (7) (10) (3)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (4 reviews)
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial Accounting For Decision Makers
ISBN: 9781292409184
10th Edition
Authors: Peter Atrill, Eddie McLaney
Question Posted:
Students also viewed these Business questions
-
Arnold plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements of the two companies for the year ended on 31 December are as follows: Required: Prepare the...
-
Relevant balance sheets as at 31 March 20X4 are set out below: You have recently been appointed chief accountant of Jasmin (Holdings) plc and are about to prepare the group balance sheet at 31 March...
-
Extracts from the financial statements of AB, CD and EF are presented below. Additional information: 1. AB acquired 80 per cent of the ordinary share capital of CD for $620,000 on 1 January 20X1 when...
-
In Exercises, use the alternative form of the derivative to find the derivative at x = c (if it exists). f(x) = 1 x + 4' c = 3
-
Name the six kinds of informal reports. Explain their purpose.
-
Go online and find the AICPA or National Association of State Boards of Accountancy (NASBA) link to State Boards of Accountancy by searching for State Boards of Accountancy Links. Select a state and...
-
Develop and analyze a simulation model for Koehler Vision Associates (KVA) in Problem 13 of Chapter 11 with the following assumptions. Assume that the demand is uniform between 110 and 160 per week...
-
Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2014. The assets of the business are as follows: Rod and Agnes agree that $50,000 of the purchase price is for...
-
Define statute of limitations and extensions
-
Segmental information relating to Dali plc for the year to 31 December 2021 is shown below: Required: Analyse the performance of each of the three main business segments for the year and comment on...
-
Quite often, when an existing company wishes to start a new venture, perhaps to produce a new product or render a new service, it will form a subsidiary company as a vehicle for the new venture. In...
-
Find the Taylor polynomial at x = a for the given function. (x) = ln(cos x), T 3 , a = 0
-
Go to: https://www.instagram.com/ryderseyewear/ on your desktop, laptop, or mobile (or a combination of all 3). You are the new Social Media Marketing Manager for Ryders Eyewear. You've been asked...
-
As leaders, it is very important that we have the ability to assess our own motivation and the motivation of others around us. It is also important to recognize the key factors involved in...
-
At the end of this exam, you will find Article 1 - " How Companies Can Prepare for a Long Run of High Inflation ". Please read the article and, when necessary, consult additional sources and the...
-
You can develop your capabilities as a manger by better understanding different ways of motivating and rewarding employees. You can also better prepare for your own career by better understanding the...
-
Topic: Project Malasakit of Kara David https://projectmalasakit.org/ What is the pros and cons of these alternative courses of the action below: Strengthen the internal organization via promoting it...
-
The Internal Revenue Service believes that U. S. citizens have deposited money in Swiss banks in order to avoid taxation of the interest earned on those funds. Known as offshore accounts, their...
-
Repeat the previous problem, but close the positions on September 20. Use the spreadsheet to find the profits for the possible stock prices on September 20. Generate a graph and use it to identify...
-
Diversified Industries plc (DI) is a business that has interests in engineering, caravan manufacturing and a chain of shops selling car accessories. DI has recently been approached by the directors...
-
(a) Calculate the Z-scores for Ali plc and Bhaskar plc (see SAQ 7.1 on pages 250 251), using the Altman model set out on page 280. (b) Comment on the Z-scores for the two businesses and the validity...
-
Telford Industrial Services plc is a medium-sized business. Extracts from the businesss financial statements appear below. Required: Prepare a set of common-sized statements of financial position and...
-
How do warehouses and distribution centers differ? What is cross-docking and why might a company choose to cross-dock a product? What kinds of products can be delivered electronically? What kinds...
-
Strawberry Inc. has historically been an all-equity firm. The analyst expects EBIT to be $1.5B in perpetuity starting one year from now. The cost of equity for the company is 11.5% and the tax rate...
-
Guzman company received a 60- day, 5 % note for 54,000 dated July 12 from a customer on account. Determine the due date on note. Determine the maturity value of the note and journalize the entry of...
Study smarter with the SolutionInn App