Set out below are the draft income statements of Ali and its subsidiary company Faran for...

 

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Set out below are the draft income statements of Ali and its subsidiary company Faran for the year ended 31 December 2020. On 1 January 2019 Ali purchased 90% ordinary shares in Faran, at a cost of RM270,000. The issued share capital of Faran is 200,000 RM1 ordinary shares. At that date the income statement of Earan showed a credit balance of RM50,000. Revenue Cost of sales Gross Profit Operating Cost Operating Profit Interest Payable Profit before tax Tax Net profit Following information is Relevant: Ali RM 000 750 (510) 240 (85) 155 155 (55) 100 Required Calculate the diluted EPS Required: Prepare consolidated statement of comprehensive income as at 31 December 2020. (15 marks Faran RM 000 450 (290) 160 (58) 102 (4) 98 (25) 73 During the year Faran sold goods to Ali for RM30,000, making a markup of 30%. Only 70% of these goods were sold before the end of the year, the rest were still in inventory. A company has 4 million ordinary shares in issue and earnings of RM10 million. It has in issue the following potential ordinary shares: (1) 200,000 5% convertible preference shares of RM100 each Conversion terms are 1 for 2. The preference shares pay a dividend of RM6/share. (2) RM500,000 10% convertible bonds Conversion terms are 250 shares per RM1,000. The company pays tax at 33%. Set out below are the draft income statements of Ali and its subsidiary company Faran for the year ended 31 December 2020. On 1 January 2019 Ali purchased 90% ordinary shares in Faran, at a cost of RM270,000. The issued share capital of Faran is 200,000 RM1 ordinary shares. At that date the income statement of Earan showed a credit balance of RM50,000. Revenue Cost of sales Gross Profit Operating Cost Operating Profit Interest Payable Profit before tax Tax Net profit Following information is Relevant: Ali RM 000 750 (510) 240 (85) 155 155 (55) 100 Required Calculate the diluted EPS Required: Prepare consolidated statement of comprehensive income as at 31 December 2020. (15 marks Faran RM 000 450 (290) 160 (58) 102 (4) 98 (25) 73 During the year Faran sold goods to Ali for RM30,000, making a markup of 30%. Only 70% of these goods were sold before the end of the year, the rest were still in inventory. A company has 4 million ordinary shares in issue and earnings of RM10 million. It has in issue the following potential ordinary shares: (1) 200,000 5% convertible preference shares of RM100 each Conversion terms are 1 for 2. The preference shares pay a dividend of RM6/share. (2) RM500,000 10% convertible bonds Conversion terms are 250 shares per RM1,000. The company pays tax at 33%.