QUESTION TWO The following information relates to the Norbreck and its subsidiary Bispharm Limited for the year 2013 Income Statement for the year ended 30 September 2013 Revenue cost of goods sold Gross Profit Bispharm Norbeck Ltd Ltd Sh'000 Sh'000 1700 450 -920 -75 780 375 -175 Administrative expenses Income from group companies Profit before tax taxation Profit for the year -300 120 600 -30 570 200 -20 180 Statement of Financial Position as on September 30 2013 Bispharm Norbeck Ltd Ltd Sh'000 Sh'000 1280 440 Non-current assets Investment shares in group company 400 1680 440 Current Assets Inventory Accounts Receivable Cash 250 150 300 280 40 620 10 410 2300 850 Total Assets Current Liabilities Accounts payable Other Payables 80 160 70 160 240 230 Non-Current Liabilities Deferred Tax 460 20 900 400 Share Capital of Sh.1 Reserves including Retained Earnings 700 200 1600 2300 600 850 Additional information; Norbreck Limited acquired 80% of the shares of Bispharm Limited On October 1, 2010. Bispharm's retained Profits as on that date was sh. 10,000 During the year Norbreck paid dividends of Sh.360,000 and Bispharm paid dividends of Sh. 150,000. Require Prepare Norbrecks consolidated Income statement for the year ended September 30, 2013, and a consolidated Statement of Financial Position s on that date (20 Marks) DUE JULY 22, 2019 QUESTION TWO The following information relates to the Norbreck and its subsidiary Bispharm Limited for the year 2013 Income Statement for the year ended 30 September 2013 Revenue cost of goods sold Gross Profit Bispharm Norbeck Ltd Ltd Sh'000 Sh'000 1700 450 -920 -75 780 375 -175 Administrative expenses Income from group companies Profit before tax taxation Profit for the year -300 120 600 -30 570 200 -20 180 Statement of Financial Position as on September 30 2013 Bispharm Norbeck Ltd Ltd Sh'000 Sh'000 1280 440 Non-current assets Investment shares in group company 400 1680 440 Current Assets Inventory Accounts Receivable Cash 250 150 300 280 40 620 10 410 2300 850 Total Assets Current Liabilities Accounts payable Other Payables 80 160 70 160 240 230 Non-Current Liabilities Deferred Tax 460 20 900 400 Share Capital of Sh.1 Reserves including Retained Earnings 700 200 1600 2300 600 850 Additional information; Norbreck Limited acquired 80% of the shares of Bispharm Limited On October 1, 2010. Bispharm's retained Profits as on that date was sh. 10,000 During the year Norbreck paid dividends of Sh.360,000 and Bispharm paid dividends of Sh. 150,000. Require Prepare Norbrecks consolidated Income statement for the year ended September 30, 2013, and a consolidated Statement of Financial Position s on that date (20 Marks) DUE JULY 22, 2019
