1. Given below are the financial statements for Chowdhury Ltd. and its subsidiary Sikder Ltd. for...

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1. Given below are the financial statements for Chowdhury Ltd. and its subsidiary Sikder Ltd. for the year ended 31 December 2017. Chowdhury Sikder Sales revenue 6,400,000 5,120,000 Cost of sales (4,400,000) (2,960,000) Gross profit 2,000,000 2,160,000 Selling and distribution costs (320,000) (240,000) Administrative expenses (800,000) (160,000) 880,000 1,760,000 Investment income 320,000 100,000 Profit before tax 1,200,000 1,860,000 Income tax (800,000) (960,000) Net profit for the year 400,000 900,000 Additional information a) Chowdhury Ltd paid Tk. 3,000,000 on 31 December 2013 for 80% of Sikder's ordinary share capital of Tk. 1,600,000. The balance on Sikder's retained earnings was Tk. 1,200,000 at that time. b) Goodwill impairment at 1 January 2017 amounted to Tk. 300,000. A further impairment of Tk. 70,000 was found to be necessary at the year end. c) Sikder made sales to Chowdhury at a selling price of Tk. 1,200,000. The profit element included in Chowdhury's closing inventory was Tk. 60,000. d) The figure for investment income in Chowdhury's income statement comprises the parent company's share of subsidiary's total dividend for the year. Prepare a consolidated income statement for the year ended 31 December 2017. [8] 1. Given below are the financial statements for Chowdhury Ltd. and its subsidiary Sikder Ltd. for the year ended 31 December 2017. Chowdhury Sikder Sales revenue 6,400,000 5,120,000 Cost of sales (4,400,000) (2,960,000) Gross profit 2,000,000 2,160,000 Selling and distribution costs (320,000) (240,000) Administrative expenses (800,000) (160,000) 880,000 1,760,000 Investment income 320,000 100,000 Profit before tax 1,200,000 1,860,000 Income tax (800,000) (960,000) Net profit for the year 400,000 900,000 Additional information a) Chowdhury Ltd paid Tk. 3,000,000 on 31 December 2013 for 80% of Sikder's ordinary share capital of Tk. 1,600,000. The balance on Sikder's retained earnings was Tk. 1,200,000 at that time. b) Goodwill impairment at 1 January 2017 amounted to Tk. 300,000. A further impairment of Tk. 70,000 was found to be necessary at the year end. c) Sikder made sales to Chowdhury at a selling price of Tk. 1,200,000. The profit element included in Chowdhury's closing inventory was Tk. 60,000. d) The figure for investment income in Chowdhury's income statement comprises the parent company's share of subsidiary's total dividend for the year. Prepare a consolidated income statement for the year ended 31 December 2017. [8]

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Notes 1 The Impairment of goodwill shall be for current year only because the ... View the full answer