The Financial statements for the companies Big, Small and Medium for the year ended 31 December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Financial statements for the companies Big, Small and Medium for the year ended 31 December 2014 are as follows: Income statements for the year ended 31 December 2014 Big Rs'000 Sales revenue Cost of sales Gross profit Administrative expenses Dividend receivable Net profit before tax Tax Profit for year Movement on reserves Accumulated profits as at 31 December 2013 Profit for the year Dividends proposed on 30 December 2014 As at 31 December 2014 Non-current assets PPE Investments at cost Current assets Equity and Liabilities Ordinary share capital (Rs1000,Par Value per share) Accumulated profits Current liabilities 7,000 (3,000) 4,000 1,000 Statements of Financial Position as at 31 December 2014 Big Rs'000 3,000 240 3,240 (1,240) 2,000 Rs 6,800 2,000 (800) 8,000 Required: 17,000 15,000 3,000 35,000 20,000 8,000 7,000 35,000 Small Rs'000 3,500 (1,500) 2,000 (500) 1,500 1,500 (600) 900 Rs 4,000 900 (400) 4,500 Small Rs'000 11,000 6,000 17,000 10,000 4,500 2,500 17,000 Further information: 1. Big acquired 6,000 of the issued 10,000 ordinary shares in Small on 31 March 2014 for Rs10,000,000. 2. Big acquired 2,000 of the issued 10,000 ordinary shares in Medium several years ago for Rs5,000,000 when the accumulated profits of Associate stood at Rs5,000,000. Big exercises significant influence over the financial and operating policies of Medium. 3. Big maintains a profit margin of 20% on all sales. 4. In the post acquisition period, Big sold to Small goods at an invoice value of Rs625,000. As at 31 December 2014, Small had sold 60% of these goods for Rs300,000. 5. During the year ended 31 December 2014, Big sold goods to Medium for Rs400,000. At year end, 50% of these goods were included in Medium's stock. 6. Except where mentioned profits are deemed to accrue evenly throughout the year. 7. It is Group policy to fair value NCI at time of acquisition. At the time of acquisition, the share price of Small stood at Rs1,647.5. 8. Goodwill arising on acquisition has been subject to an impairment of 20% as at 31 December 2014. Prepare consolidated statement of financial position for the Big Group as at 31 December 2014. Medium Rs'000 5,000 (2,000) 3,000 (1,000) 2,000 2,000 (700) 1,300 Rs 6,700 1,300 8,000 Medium Rs'000 15,000 5,000 20,000 10,000 8,000 2,000 20,000 The Financial statements for the companies Big, Small and Medium for the year ended 31 December 2014 are as follows: Income statements for the year ended 31 December 2014 Big Rs'000 Sales revenue Cost of sales Gross profit Administrative expenses Dividend receivable Net profit before tax Tax Profit for year Movement on reserves Accumulated profits as at 31 December 2013 Profit for the year Dividends proposed on 30 December 2014 As at 31 December 2014 Non-current assets PPE Investments at cost Current assets Equity and Liabilities Ordinary share capital (Rs1000,Par Value per share) Accumulated profits Current liabilities 7,000 (3,000) 4,000 1,000 Statements of Financial Position as at 31 December 2014 Big Rs'000 3,000 240 3,240 (1,240) 2,000 Rs 6,800 2,000 (800) 8,000 Required: 17,000 15,000 3,000 35,000 20,000 8,000 7,000 35,000 Small Rs'000 3,500 (1,500) 2,000 (500) 1,500 1,500 (600) 900 Rs 4,000 900 (400) 4,500 Small Rs'000 11,000 6,000 17,000 10,000 4,500 2,500 17,000 Further information: 1. Big acquired 6,000 of the issued 10,000 ordinary shares in Small on 31 March 2014 for Rs10,000,000. 2. Big acquired 2,000 of the issued 10,000 ordinary shares in Medium several years ago for Rs5,000,000 when the accumulated profits of Associate stood at Rs5,000,000. Big exercises significant influence over the financial and operating policies of Medium. 3. Big maintains a profit margin of 20% on all sales. 4. In the post acquisition period, Big sold to Small goods at an invoice value of Rs625,000. As at 31 December 2014, Small had sold 60% of these goods for Rs300,000. 5. During the year ended 31 December 2014, Big sold goods to Medium for Rs400,000. At year end, 50% of these goods were included in Medium's stock. 6. Except where mentioned profits are deemed to accrue evenly throughout the year. 7. It is Group policy to fair value NCI at time of acquisition. At the time of acquisition, the share price of Small stood at Rs1,647.5. 8. Goodwill arising on acquisition has been subject to an impairment of 20% as at 31 December 2014. Prepare consolidated statement of financial position for the Big Group as at 31 December 2014. Medium Rs'000 5,000 (2,000) 3,000 (1,000) 2,000 2,000 (700) 1,300 Rs 6,700 1,300 8,000 Medium Rs'000 15,000 5,000 20,000 10,000 8,000 2,000 20,000
Expert Answer:
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
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...
-
What are the common myths about C4 plants?
-
You are an investment analyst. A client of yours, Mr A, owns 3.5% of the share capital of Price. Price is a listed company and prepares financial statements in accordance with International...
-
A group of 70 students were asked to record the last digit of their social security number. a. Draw a relative frequency histogram using the values 0 through 9 as the class midpoints. What is the...
-
The input and output of a linear time-invariant system satisfy a difference equation of the form, Assume that an FFT program is available for computing the DFT of any finite-length sequence of length...
-
In October, Claire's Gallery purchased four original paintings for resale for the following amounts: Painting 1, $1,000; Painting 2, $2,000; Painting 3, $3,000; and Painting 4, $4,000. Paintings 3...
-
Which is better domestic fuel? (a) \(\mathrm{CNG}\) (b) LPG (c) Wood (d) Coal
-
Perine Company has 1,600 pounds of raw materials in its December 31, 2012, ending inventory . Required production for January and February of 2013 are 4,000 and 5,500 units, respectively. Two pounds...
-
Ali, a small company, is currently considering a major capital investment project for which additional finance will be required. It is not currently feasible to raise additional equity finance;...
-
There are N houses (numbered from 0 to N-1) along a street. In each of them, recyclable trash (plastic, glass, metal) is collected into separate bags. There are three trucks that collect the trash....
-
Complete ionic and net ionic equation for: Ca 2+ and sodium iodide, Pb 2+ and sodium iodide, Zn 2+ and sodium iodide, Fe2+ and NH3, Aqueous ammonia solution was added dropwise then in excess to 1mL...
-
On Friday, NOV 2, 2018 stock ACDC was trading for $25/share. 1. ACDC's annual VOL was: = 53%. 2. T-bills traded on NOV 2, 2018 were: With maturity on TH, DEC 20, 2018, exactly 49 days from today;...
-
Name several operating systems that run LANs today. Do not include different versions of a single operating system. For each operating system, list its name, the platform or network it operates on,...
-
If the expected rate of return on the market portfolio is 13 percent and the T-bills yield is 6 percent, what must be the beta of a stock that investors expect to return 10 percent
-
You are attempting to value a call option with an exercise price of $80 and one year to expiration. The underlying stock pays no dividends, its current price is $80, and you believe it has a 50%...
-
Two years ago, the price of a bond was 1,083.45 dollars, and one year ago, the price of the bond was 1,146.68 dollars. Over the past year, the bond paid a total of 66.2 dollars in coupon payments,...
-
Assume there are 3 types of squirrels in the world (red, black, grey). Assume 40% of squirrels are black, 40% of squirrels are grey and 20% are red. Assume 3% of red squirrels are in Ontario, 2% of...
-
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
-
Exhibit 5.22 presents selected financial data for ABC Auto and XYZ Comics for fiscal Year 5 and Year 6. ABC Auto manufactures automobile components that it sells to automobile manufacturers....
-
Henry Company is a marketer of branded foods to retail and foodservice channels. Exhibit 6.18 presents Henry's income statements for Year 10, Year 11, and Year 12. Notes to the financial statements...
-
Most economists describe three determinants of the interest rates on a borrower's debt: a real interest rate, which is a charge for using capital; an adjustment for expected inflation to insure that...
-
Read the following extract from an article about a business venture of the Bob Jane company. Is prudence still a virtue? The concept of prudence and its use, or non-use, in financial reporting has...
-
Your friend Ninette Nobis was a tourism management student when you were at university together and is now a manager of an upmarket hotel in the Exquisite Hotels chain. Because of the impact of an...
-
Transactions affecting Bradford Ltds accounts receivable for the year ended 30 June are presented below. On 1 July of the previous year, the opening balance of the Allowance for Doubtful Debts...
Study smarter with the SolutionInn App