CORPORATE REPORTING Question ASSIGNMENT #2 BSAF-6A P Income Statement for the year ended 31st December 2008 Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Profit Dividend Income Income Tax Net Profit after Tax Ordinary Dividend paid Retained Profits b/f Rs. 7,500 (4,500) 3,000 (1,800) 1,200 100 1,300 (520) 780 (250) 530 1,000 Retained Profits c/f 1,530 S Rs. The Parent Co. (P) acquired 80% equity of the Subsidiary Co. (S) on 1st January 2003 for Rs.1,700 when S's paid up share capital was Rs.1,250 & it's reserves were worth Rs.50. During the year S sold to P goods costing Rs.1,000 & selling price of Rs.1,250 of which inventory of Rs. 200 cost to P Co. remained unsold. (Assume all reserves comprise only of Retained Profits). Goodwill has been impaired so far. Prepare the Consolidated Income Statement for the year ended Required: 31/12/2008