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 consolidated (group) income statement for Arnold plc and its subsidiary for the year ended 31 December Income stat...

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Arnold plc owns 75 per cent of the ordinary shares

Arnold plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements

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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:

Income statements for the year ended 31 December Baker plc Arnold plc £m £m Revenue 83 47 Cost of sales (36) (19) Gros

Required:

Prepare the consolidated (group) income statement for Arnold plc and its subsidiary for the year ended 31 December.

Transcribed Image Text:

Income statements for the year ended 31 December Baker plc Arnold plc £m £m Revenue 83 47 Cost of sales (36) (19) Gross profit Administration expenses 47 28 (14) (7) (10) Distribution expenses (21) Profit before taxation 12 11 Taxation (4) (3) Profit for the year

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Question Posted: Sep 18, 2018 01:56 PM

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