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Question 5 On 1st April 2019, Cox Ltd acquired 120,000 shares in Braeburn Ltd from a total share capital of 150,000 (1 shares). On 1st
Question 5 On 1st April 2019, Cox Ltd acquired 120,000 shares in Braeburn Ltd from a total share capital of 150,000 (1 shares). On 1st January 2020, Cox Ltd also acquired 40% of the shares of Fuji Ltd. The Statements of Profit or Loss for the year to 31 March 2020 for the three companies are shown below: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Operating profit Dividends received Profit before tax Taxation Profit for the year Cox Ltd. 625,000 -130,000 495,000 -25,000 -30,600 439,400 12,000 451,400 -87,000 364,400 Braeburn Ltd. 170,000 -65,000 105,000 -20,000 -13,500 71,500 Fuji Ltd. 580,000 -117,500 462,500 -18,000 -18,700 425,800 71,500 -15,600 55,900 425,800 -80,400 345,400 Notes: 1) In February 2020, Braeburn Ltd sold goods to Cox Ltd for 20,000. The sales were made at a profit margin of 25%. At the year-end, 40% of these goods remain in the inventories of Cox Ltd. 2) The income and expenses of Fuji Ltd can be assumed to accrue evenly over the year to 31st March 2020. 3) Braeburn Ltd paid dividends of 10,000 during the year to its shareholders. No other dividends were paid within the group. 4) On 31st March 2020, Braeburn Ltd revalued its non-current assets upwards by 35,000. It is the Cox Group's policy to revalue group assets. a. Prepare the Consolidated Statement of Comprehensive Income for the Cox Group for the year ended 31 March 2020
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