urgent please upvote for answer with working out

course: Financial reporting

PARTA Cornwall Industries Limited (CIL) 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) CIL expanded its operations to offer a farm equipment rental service to local farmers called Agro-Rentals The following are CIL's summarized income statement results, for the year ended 31 October 2019: 31 October 2019 310ctober 2018 Fruits Coffee Agro- Total Division Division Rentals $ Revenue 69,000 42.000 6,000 117.000 120000 Cost of sales (54,000) (49,500) (4.500) (108,000) (96,000) 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 18,000 S S Gross Profit loss 1200 The results for the Coffee Division for the year ended 31 October 2018 were: revenue S54 million, cost of sales S45 million and operating expenses of S 4.5 million Required (a) Discuss whether the directors wish to show the Coffee Division's results as a discontinued operation is justitiable. (5 marks) (b) Assuming the closure of the Coffee Division is a discontinued operation, prepare the (summarized) income statement of Comwall Industries Limited for the year ended 31 October 2019 together with its comparatives (12 marks) Note. Il discloses the analysis of its discontinued operations on the face of its income statement