Alice plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements
Question:
Alice plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements of the two companies for the year ended on 31 December are as follows
Required:
Prepare the consolidated (group) income statement for Alice plc and its subsidiary for the year ended 31 December.
Transcribed Image Text:
Income statements for the year ended 31 December Alice plc m Baker plc m Revenue 83 47 Cost of sales (36) (19) Gross profit 47 Administration expenses (14) Distribution expenses (21) Profit before taxation 12 Taxation Profit for the year (4) 8 9x9= 9 (7) (10) (3)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial Accounting For Decision Makers
ISBN: 9781292409184
10th Edition
Authors: Peter Atrill, Eddie McLaney
Question Posted:
Students also viewed these Business questions
-
Arnold plc owns 75 per cent of the ordinary shares of Baker plc. The outline income statements of the two companies for the year ended on 31 December are as follows: Required: Prepare the...
-
Relevant balance sheets as at 31 March 20X4 are set out below: You have recently been appointed chief accountant of Jasmin (Holdings) plc and are about to prepare the group balance sheet at 31 March...
-
Extracts from the financial statements of AB, CD and EF are presented below. Additional information: 1. AB acquired 80 per cent of the ordinary share capital of CD for $620,000 on 1 January 20X1 when...
-
In Exercises, use the alternative form of the derivative to find the derivative at x = c (if it exists). f(x) = 1 x + 4' c = 3
-
Name the six kinds of informal reports. Explain their purpose.
-
Drawing on recent examples, consider the extent to which strike action is likely to help trade union members achieve their various aims.
-
Crush Autosmashers can purchase a new electromagnet for moving cars at a cost of \($20,000.\) At the end of its useful life, the electromagnet will be worth \($1,000.\) If Crushs MARR is 12...
-
The Farley Manufacturing Company prides itself on the quality of its products. The company is engaged in competition for a very important project. A key element is a part that ultimately goes into...
-
According to the Civil Code of the Philippines, Article 1 7 6 7 defines partnership as: By the contract of partnership two or more persons bind themselves to contribute money, property, or industry...
-
Segmental information relating to Dali plc for the year to 31 December 2021 is shown below: Required: Analyse the performance of each of the three main business segments for the year and comment on...
-
Quite often, when an existing company wishes to start a new venture, perhaps to produce a new product or render a new service, it will form a subsidiary company as a vehicle for the new venture. In...
-
Michael is the sole proprietor of a small business. In June 2015 his business income is $12,000 before consideration of any 179 deduction. He spends $245,000 on furniture and equipment in 2015. If...
-
As an HR manager, you have heard rumors about potential efforts to unionize your warehouse employees. Using online resources, prepare a short list of guidelines (at least three points) hto help...
-
Consider the following information: State Probability ABC Inc.'s Return Boom 0.25 15% Normal 0.50 8% Slowdown 0.15 4% Recession 0.10 -3% i. 11. iii. What is the expected return? What is the variance?...
-
A case study analysis requires you to investigate a business problem, examine solutions and propose a recommendation based on research. Prepare a case study for Angelo's Pizza.
-
One of the 5 major tax issues associated with mergers, acquisitions and divestitures is whether the acquirer uses cash from newly issued equity or cash from retained earnings to purchase the target...
-
1. Ubuntu has value to add to business contexts of stakeholder management. What is the normative content fundamental to the African ethic of Ubuntu? 2. Discuss how an Ubuntu approach can enhance...
-
The 3/1H isotope of hydrogen, which is called tritium (because it contains three nucleons), has a half-life of 12.33yr, it can be used to measure the age of objects up to about 100yr. It can be used...
-
A heat engine has a heat input of 3 Ã 104 Btu/h and a thermal efficiency of 40 percent. Calculate the power it will produce, in hp. Source 3 x 10 Btu/h 40% HE Sink
-
Diversified Industries plc (DI) is a business that has interests in engineering, caravan manufacturing and a chain of shops selling car accessories. DI has recently been approached by the directors...
-
(a) Calculate the Z-scores for Ali plc and Bhaskar plc (see SAQ 7.1 on pages 250 251), using the Altman model set out on page 280. (b) Comment on the Z-scores for the two businesses and the validity...
-
Telford Industrial Services plc is a medium-sized business. Extracts from the businesss financial statements appear below. Required: Prepare a set of common-sized statements of financial position and...
-
ABC corporation purchased a 100,000 asset two years ago with a residual value of 10,000 and useful life of 5 years. Currently, after two years of straight-line depreciation, the asset's book value is...
-
A metal casting weighs 32 pounds. Each shelf that the castings are stored on holds 5 castings. The rack has 4 shelves. The wall holds 7 racks. If all the shelves on all the racks are full, how much...
-
DMIC Company was proposed of five real estate projects to build for next year . Their available funds to capital is worth Php 20 Billion. The income and their capitalization per project shown in the...
Study smarter with the SolutionInn App