Submitted by: Submitted by qpqpqpabc
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Words: 5463
Pages: 22
Category: Business and Industry
Date Submitted: 11/04/2014 07:55 AM
Question 1
The financial statements of A Co are shown below. P Co acquired a 30% interest in A Co on 1 January 20X3.
Income statements for the year ended 31 December 20X5
| |$ | |
|Profit before tax |200,000 | |
|Tax |40,000 | |
|Profit after tax |160,000 | |
|Dividends declared |20,000 | |
|Profit retained |140,000 | |
|Retained earnings, 1 January 20X5 |100,000 | |
|Retained earnings, 31 December 20X5 |240,000 | |
Statements of financial position as at 31 December 20X5
| |$ | |
|Non-current assets, net book value |450,000 | |
|Inventory |120,000 | |
|Accounts receivable |60,000 | |
|Cash |25,000 | |
| |655,000 | |
| | | |
|Accounts payable...