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The following are the surmarised financial statements of two companies. Peel and Canal for the financial year ended 31 October 2011 Income Statements for the

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The following are the surmarised financial statements of two companies. Peel and Canal for the financial year ended 31 October 2011 Income Statements for the year ended 31 October 2011 Peel Em Cord Em 125 9: Revenue Cost of sales Gross profit Operating expenses Investment income Interest receivable Finance charges Net profit before taxation Taxation Profit for the year 05 Statements of Financial Position as at 31 October 2011 ASSETS Non-current assets Tangible assets, net book value Investments, at cost Current assets Total assets EQUITY and LIABILITIES Equity Ordinary shares of ! Retained earnings Non-current liabilities Current liabilities Total equity and liabilities The following information is available: 0 Peel purchased 90% of the ordinary shares in Caval for 240m on 1 November 2010 when the reserves of Caval were 76m. Each ordinary share in Caval carries one vote and there are no von nights other than those attaching to the ordinary shares. Cavalhas not issued any additional are since its acquisition by Peel Peel made a long-term loan of 23m to Gaval during the year ended 31 October 2011. Caval made Interest payments of 3m on this loan and there was no interest outstanding as at 31 October Dunng the year ended 31 October 2011 Peel made sales totalling 40m to Caval The goods sold to Caval had cost Peel 24m and 75% had been resold by Caval by 31 October 2011. AS October 2011 Caval had invoices totallina fim payable to Peel which were unpad Dividends paid by the companies during the by the companies during the year ended 31 October 2011 were Peel 3Om and Caval 20m. Required: Prepare in so far as the above information permits: (a) The consolidated statement of comprehensive income of Peel for the year 2011. omprehensive income of Peel for the year ended 31 October (b) The consolidated statement of financial position of Peel as at 31 October 2011 Note: enter all figures correct to the nearest Em and provide full supportive w

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