Question
please can this be done in full Question 4: The statements of comprehensive income for Rose plc, Liverpool plc and Malta plc for the year
please can this be done in full
Question 4:
The statements of comprehensive income for Rose plc, Liverpool plc and Malta plc for the year ended 31 December 2019 were as follows:
Statements of comprehensive income for the year ended 31 December 2019 | |||
| Rose | Liverpool | Malta |
| 000 | 000 | 000 |
Sales | 120,000 | 86,000 | 56,000 |
Cost of sales | 35,000 | 43,000 | 32,000 |
Gross profit | 85,000 | 43,000 | 24,000 |
Expenses | 31,500 | 32,500 | 16,000 |
Dividends received | 5,600 | 2,800 | 2,000 |
Profit before tax | 59,100 | 13,300 | 10,000 |
Taxation | 13,100 | 2,750 | 4,000 |
Profit for the year | 46,000 | 10,550 | 6,000 |
Dividends paid in year | 21,000 | 5,100 | 3,000 |
The following information is also relevant:
- Rose plc acquired 70% of the shares in Liverpool plc on 1 October 2009 when the balance on the retained earnings of Liverpool plc was 36,000,000 and the balance on the general reserve of Liverpool plc was 4,500,000. Rose plc also acquired 20% of the shares in Malta plc on 1 October 2010 when the balance on Malta plcs retained earnings was 10,500,000 and the general reserve 2,200,000.
- During the year Rose plc sold Liverpool plc goods for 6,600,000 which included a mark-up of 50%. Sixty percent (60%) of these goods were still in inventory at the end of the year.
- The taxation expense at Rose plc has been overestimated by 1,800,000, and this has not been adjusted.
Required:
Prepare Rose plcs consolidated statement of comprehensive income for the year to 31 December 2019. All workings should be shown.
(Note: The non-controlling interest should not be charged with its proportion of the unrealised profit when calculating the consolidated profit attributable to non-controlling shareholders.)
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