Global Industries Limited (GIL) is in the process of preparing its financial statements for the year ended 31 October 2019. The company's main activity is in the processed food industries, selling processed coffee (Coffee Division) and processed fruits (Fruits Division) as separate business lines.

During the current year the quantity of coffee sold declined dramatically and the directors decided at a board meeting on 15 October 2019 to cease the production and sale of processed coffee and to sell off the related facilities. Immediately after the meeting the coffee processing staff and suppliers were notified of the situation and an announcement was made in the press.

The directors wish to show the Coffee Division's results as a discontinued operation in the financial statements to 31 October 2019. Due to the declining business of the Coffee Division, on 1 August 2019 (three months before the year-end) GIL expanded its operations to offer a farm equipment rental service to local farmers called Agro-Rentals

The following are GILs summarized income statement results, for the year ended 31 October 2019:

31 October 2019					31 October 2010
	Fruits Division	Coffee Division	Agro-Rentals	Total
	$	$	$	$	$
Revenue	69,000	42,000	6,000	117,000	120000
Cost of sales	(54,000)	(49,500)	(4,500)	(108,000)	(96,000)
Gross Profit/loss	15,000	(7,500)	1,500	9,000	24,000
Operating expenses	(3,000)	(4,500)	(300)	(7,800)	(6,000)
Profit/(loss) before tax	12,000	(12,000)	1200	1200	18,000

The results for the Coffee Division for the year ended 31 October 2018 were: revenue $54 million, cost of sales $45 million and operating expenses of $ 4.5 million.

Required

(i) Discuss whether the directors' wish to show the Coffee Divisions results as a discontinued operation is justifiable.

(ii) Assuming the closure of the Coffee Division is a discontinued operation, prepare the (summarized) income statement of Global Industries Limited for the year ended 31 October 2019 together with its comparatives.

Note. GIL discloses the analysis of its discontinued operations on the face of its income

statement.