=+Question 3 (Based on ICAI, P3 Autumn 2000, Question 5)

The statements of comprehensive income of TOWER Limited, KITE Limited and LINE Inc. for the year ended 31 December 2003 are shown below.

TOWER Limited KITE Limited LINE Inc.

€ million € million Kd million Revenue 850 680 1,400 Cost of sales ' 340 \ 260 840 Gross profit 510 | 420 - 560 Net operating expenses 32) 290 240 Operating profit 155 130 320 Investment income 45 siti =

Profit before tax 200 130 320 Tax (60) (40) 100 Profit after tax 140 90 220 Dividends paid 100 (60) _-

Retained profit for the year eral 30 220 Additional Information: