? Fancy Rerhad decided to acquire its main supplier to ensure qualiry supplies at the right prices.
Fantastic news! We've Found the answer you've been seeking!
Question:
?
Transcribed Image Text:
Fancy Rerhad decided to acquire its main supplier to ensure qualiry supplies at the right prices. On I January 2020, it acquired 100 of the ordinary shares in Fili Berhad for a consideration of RM9 million. On this date, the net asets of Fifi lerhad were stated in its accounts at fair value and the share capital, retained profits and share premium were RMS million, RM3.52 million and RM320,0X00 respectively. Below was the financial information of the two companies: Statement of Profit or Loss and Movement in Retained Profits for the year ended 31 December 2020 Fancy Berhad Fifi Berhad RM000 RM'000 Sales 36,000 14,400 Cost of goods sold Opening inventories 2,640 20,800 2,160 Purchases 8,000 Less: Clasing inventories 3,440 2,800 20,000 16,000 7,360 Gross profit 7,040 Rental incomes 720 Shared service fee income Less: Operating expenses 1,080 7,520 3,200 (5,720) (3.200) Operating profit Less: Interest expenses 10,280 3,840 160 Interest income 240 Dividend incomes 2,400 2,640 (160) 3,680 Net profit hefore taxation Less: Tax expenses Net prolit for the year 12,920 3,000 9,920 2,800 Movement in retained profits Retained profits bif Net prolit for the yeur Less: Dividends paid Retained profits e/f 20,000 3,520 9,920 1,760 2,800 800 28,160 5,520 Fancy Rerhad decided to acquire its main supplier to ensure qualiry supplies at the right prices. On I January 2020, it acquired 100 of the ordinary shares in Fili Berhad for a consideration of RM9 million. On this date, the net asets of Fifi lerhad were stated in its accounts at fair value and the share capital, retained profits and share premium were RMS million, RM3.52 million and RM320,0X00 respectively. Below was the financial information of the two companies: Statement of Profit or Loss and Movement in Retained Profits for the year ended 31 December 2020 Fancy Berhad Fifi Berhad RM000 RM'000 Sales 36,000 14,400 Cost of goods sold Opening inventories 2,640 20,800 2,160 Purchases 8,000 Less: Clasing inventories 3,440 2,800 20,000 16,000 7,360 Gross profit 7,040 Rental incomes 720 Shared service fee income Less: Operating expenses 1,080 7,520 3,200 (5,720) (3.200) Operating profit Less: Interest expenses 10,280 3,840 160 Interest income 240 Dividend incomes 2,400 2,640 (160) 3,680 Net profit hefore taxation Less: Tax expenses Net prolit for the year 12,920 3,000 9,920 2,800 Movement in retained profits Retained profits bif Net prolit for the yeur Less: Dividends paid Retained profits e/f 20,000 3,520 9,920 1,760 2,800 800 28,160 5,520
Expert Answer:
Answer rating: 100% (QA)
THE IMPACT OF DILUTED EARNINGS ON SHAREHOLDERS WILL BE ... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these accounting questions
-
On 1 January 2020, P Ltd acquired 90% of ownership of S Ltd. Fair value of non-controlling interests at the date of acquisition was $600,000. The financial statements of P Lid and S Ltd for the year...
-
The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows: Statements of comprehensive income for the year ended 31 December 2007 The following...
-
The statements of comprehensive income and changes in equity for XY and its subsidiary, AZ for the year ended 31 December 2012 are shown below: XY AZ Statement of comprehensive income for the year...
-
The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows. The bank statement contained two memoranda: 1. A credit of $5,285 for the collection of a $5,140...
-
What is the cause- and- effect relationship between the revenues and the expenses of a proprietary fund?
-
Oregon Interior Decorators issued a 90-day, 6% note for $90,000, dated April 9, to Corvallis Furniture Company on account. a. Determine the due date of the note. b. Determine the maturity value of...
-
In evaluating investment centers, what does multiplying the profit margin bythe investment turnover equal?
-
An apartment building in your neighborhood is for sale for $140,000. The building has four units, which are rented at $500 per month each. The tenants have long-term leases that expire in 5 years....
-
2. Conduct a comprehensive PEST or 5 Forces analysis to analyze the external environment for Henkel. Take care to comprehensively gather credible evidence and cite information to complete the...
-
Vicki's Fabric Store shows the trial balance on page 603 as of December 31, 20-1. At the end of the year, the following adjustments need to be made: (a and b) Merchandise inventory as of December 31,...
-
Calculate the maximum price that you would pay for a constant growth stock that has the following characteristics: (a) Dividend: $1.50 (will pay), (b) Growth Rate: 5%, and (c) Required Rate of...
-
When working on a capital budgeting problem in Finance, when examining whether purchasing a new vessel is the best choice, do you factor in the selling of the old value? And if so, is this book value...
-
4.Your design team has produced two alternative designs for greenhouses in a developing country. Alternative A has an initial cost of $200 and will last two years. Alternative B has an initial cost...
-
If you own a European call option with strike price 100, 1 month to expiration, the riskless interest rate is 1% and the stock is trading at 112, what is the lowest price for which you should be...
-
As an IT support technician for a small organization, it's your job to support the computers, the small network, and the users. One of your coworkers, Jason, comes to you in a panic. His Windows 10...
-
Letter to clients/customers communicating a change Purpose: To plan and write a letter that communicates unexpected and unwanted change. To communicate the change (internally or externally) in a way...
-
Your answer is partially correct. Prepare three depreciation tables for 2020, 2021, and 2022: one for straight-line depreciation (similar to the one in Illustration 9.10), one for double-declining...
-
General Electric Capital, a division of General Electric, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal...
-
Paul and Callum, owners of competing businesses, agree to form a partnership on 1 July 2013. Their individual assets and liabilities were independently valued, and it was on this basis that the...
-
Outline the reason for implementing a team based reward structures and the disadvantages in doing so?
-
Percy, a sole trader operating a small landscaping business, asks you to prepare his balance sheet (showing his equity) for the year ended 30 June 2013from the following information: contributed...
-
The Moose Wings Cooperative Flight Club owns a number of airplanes and gliders. It serves fewer than 2,000 members, who are numbered sequentially from the founder, Tom Eagle (0001), to the newest...
-
Use the following data to calculate the effects of different backup approaches. Which approach would you recommend? Why? Consider the time required to backup, the amount of media that must be...
-
Visit the Information Systems Audit and Control Associations (ISACA) Web site (www.isaca.org) to review the COBIT framework (version 4.1). Complete the following matrix to show how the 34 high-level...
Study smarter with the SolutionInn App