The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available at www.zetarplc.com.
Instructions
Use the company’s annual report to answer the following questions.
(a) The company’s income statement reports a loss on discontinued operations. What business did the company discontinue, and why did it choose to discontinue the business?
(b) For the year ended April 30, 2009, what amount did the company lose on the operation of the discontinued business, and what amount did it lose on disposal?
(c) What was the total recorded value of the net assets at the date of disposal, and what was the amount of costs incurred to dispose of the business?