Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial
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Question:
Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows:
Big (€) | Small (€) | |
Sales revenue | 800,000 | 500,000 |
Cost of sales | 560,000 | 300,000 |
Gross profit | 240,000 | 200,000 |
During the year 2021 Co Big sold goods to Co small for €150,000. These goods had cost Co Big €120,000.
What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end:
Sales revenue | ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] |
Cost of sales | ["740,000", "710,000", "860,000", "688,000"] |
Gross profit | ["470,000", "440,000", "352,000", "410,000"] |
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292080505
17th edition
Authors: Barry Elliott, Jamie Elliott
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