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Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as
Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows:
Big () | Small () | |
Sales revenue | 800,000 | 500,000 |
Cost of sales | 560,000 | 300,000 |
Gross profit | 240,000 | 200,000 |
During the year 2021 Co Big sold goods to Co small for 150,000. These goods had cost Co Big 120,000.
What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end:
Sales revenue | ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] |
Cost of sales | ["740,000", "710,000", "860,000", "688,000"] |
Gross profit | ["470,000", "440,000", "352,000", "410,000"] |
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