Statement of Profit or Loss for the year ended 30 June 2019 Barnier ple Varadkar Ltd...
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Statement of Profit or Loss for the year ended 30 June 2019 Barnier ple Varadkar Ltd €'000 Johnson Ltd €'000 €'000 Revenue 9,000 6,000 4,500 Cost of sales (4,500) (3.000) 3,000 (750) (2,250) Gross profit Operating expenses Operating profit 4,500 2,250 (1,125) (565) 1,685 3,375 (375) 2,250 Finance costs (300) (180) Profit before tax 3,000 (750) 1,950 1,505 (375) Income Tax expense (490) Profit after tax 2,250 1,460 1,130 Additional Information: (a) Barnier plc acquired 80% of the ordinary shares of Varadkar Ltd on 31 December 2018 for €5,625,000. A number of years earlier Bamier plc purchased 30% of the ordinary shares of Johnson Ltd for €2,065,000, when retained carnings were € 565,000. (b) The total retained earnings of each company at 30 June 2018 are as follows: €7,500,000 €2,975,000 €1,255,000 Barnier ple Varadkar Ltd Johnson Ltd (c) On 1" January 2019 Barnier ple sold equipment and with a book value of €260,000 (cost €565,000) to Varadkar Ltd for €370,000. The remaining useful economic life of the cquipment on the date of sale was 5 years. Both companies charge depreciation on a time apportioned basis. Varadkar Ltd commenced trading with Barnier ple in February 2019. Varadkar Ltd recorded sale of € 350,000 to Barnier ple during the period to 30 June 2019, generating a margin of 20% on all sales. All inventory purchased by Barnier ple were sold by the year end. (d) (e) The transactions and profits of all three companies accrue evenly throughout the year. Requirement: Prepare the Consolidated Statement of Profit or Loss of the Barnier Group for the year ended 30 June 2019. Total 40 marke Statement of Profit or Loss for the year ended 30 June 2019 Barnier ple Varadkar Ltd €'000 Johnson Ltd €'000 €'000 Revenue 9,000 6,000 4,500 Cost of sales (4,500) (3.000) 3,000 (750) (2,250) Gross profit Operating expenses Operating profit 4,500 2,250 (1,125) (565) 1,685 3,375 (375) 2,250 Finance costs (300) (180) Profit before tax 3,000 (750) 1,950 1,505 (375) Income Tax expense (490) Profit after tax 2,250 1,460 1,130 Additional Information: (a) Barnier plc acquired 80% of the ordinary shares of Varadkar Ltd on 31 December 2018 for €5,625,000. A number of years earlier Bamier plc purchased 30% of the ordinary shares of Johnson Ltd for €2,065,000, when retained carnings were € 565,000. (b) The total retained earnings of each company at 30 June 2018 are as follows: €7,500,000 €2,975,000 €1,255,000 Barnier ple Varadkar Ltd Johnson Ltd (c) On 1" January 2019 Barnier ple sold equipment and with a book value of €260,000 (cost €565,000) to Varadkar Ltd for €370,000. The remaining useful economic life of the cquipment on the date of sale was 5 years. Both companies charge depreciation on a time apportioned basis. Varadkar Ltd commenced trading with Barnier ple in February 2019. Varadkar Ltd recorded sale of € 350,000 to Barnier ple during the period to 30 June 2019, generating a margin of 20% on all sales. All inventory purchased by Barnier ple were sold by the year end. (d) (e) The transactions and profits of all three companies accrue evenly throughout the year. Requirement: Prepare the Consolidated Statement of Profit or Loss of the Barnier Group for the year ended 30 June 2019. Total 40 marke
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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