King plc owns a number of subsidiaries, one of which is Throne plc in which it has an 80%

stake. In terms of King plc’s portfolio of investments, Throne plc represents a relatively minor investment and the company operates independently, with little or no interference from King ple.

As assistant to King plc’s finance director, you have been asked to analyse the performance of Throne plc because each of King plc’s investments will be reviewed at the next meeting of the board of directors. Throne plc has provided the following information with respect to its 2017 activities.

Additional Information:
1. All of Throne plc’s sales and purchases are on credit.
2. THRONE'’s share price at 31 December 2016 and 31 December 2017 was 110 cent and 165 cent respectively.
3. During the year ended 31 December 2016 and 31 December 2017, Throne ple paid ordinary dividends of €20,000 and €40,000 respectively.
Requirement Prepare a report for King plc's finance director which analyses the performance of Throne plc during the year ended 31 December 2017 and identifies any further information required to complete the analysis

Transcribed Image Text:

Throne plc STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Revenue Cost of sales Gross profit for the Year Ended 31 December 2017 000 2016 000 565 440 (190) 375 (176) 264