Question: please can this be done in full Question 4: The statements of comprehensive income for Rose plc, Liverpool plc and Malta plc for the year

please can this be done in full

Question 4:

The statements of comprehensive income for Rose plc, Liverpool plc and Malta plc for the year ended 31 December 2019 were as follows:

Statements of comprehensive income for the year ended 31 December 2019

Rose

Liverpool

Malta

000

000

000

Sales

120,000

86,000

56,000

Cost of sales

35,000

43,000

32,000

Gross profit

85,000

43,000

24,000

Expenses

31,500

32,500

16,000

Dividends received

5,600

2,800

2,000

Profit before tax

59,100

13,300

10,000

Taxation

13,100

2,750

4,000

Profit for the year

46,000

10,550

6,000

Dividends paid in year

21,000

5,100

3,000

The following information is also relevant:

  1. Rose plc acquired 70% of the shares in Liverpool plc on 1 October 2009 when the balance on the retained earnings of Liverpool plc was 36,000,000 and the balance on the general reserve of Liverpool plc was 4,500,000. Rose plc also acquired 20% of the shares in Malta plc on 1 October 2010 when the balance on Malta plcs retained earnings was 10,500,000 and the general reserve 2,200,000.
  2. During the year Rose plc sold Liverpool plc goods for 6,600,000 which included a mark-up of 50%. Sixty percent (60%) of these goods were still in inventory at the end of the year.
  3. The taxation expense at Rose plc has been overestimated by 1,800,000, and this has not been adjusted.

Required:

Prepare Rose plcs consolidated statement of comprehensive income for the year to 31 December 2019. All workings should be shown.

(Note: The non-controlling interest should not be charged with its proportion of the unrealised profit when calculating the consolidated profit attributable to non-controlling shareholders.)

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