set out below are the financial statements of ant co its subsidiary bug co and an as 535066
Set out below are the financial statements of Ant Co., its subsidiary Bug Co. and an associated company Nit Co. for the accounting year-end 31 December 20X9.
Statements of financial position as at 31 December 20X9
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set out below are the financial statements of ant co its subsidiary bug co and an as 535066
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|
Ant |
Bug |
Nit |
|
|
$ |
$ |
$ |
|
|
ASSETS |
|||
|
Non-cur rent assets |
|||
|
Property, plant and equipment at cost |
240,000 |
135,000 |
75,000 |
|
Depreciation |
150,000 |
52,500 |
15,750 |
|
90,000 |
82,500 |
59,250 |
|
|
Investment in Bug |
90,000 |
||
|
Investment in Nit |
30,000 |
||
|
Current assets |
|||
|
Inventories |
105,000 |
45,000 |
27,000 |
|
Trade receivables |
98,250 |
52,500 |
27,000 |
|
Current account – Bug |
11,250 |
||
|
Current account – Nit |
2,250 |
||
|
Bank |
17,250 |
5,250 |
4,500 |
|
Total current assets |
234,000 |
102,750 |
58,500 |
|
Total assets |
444,000 |
185,250 |
117,750 |
|
EQUITY AND LIABILITIES |
|||
|
$1 ordinary shares |
187,500 |
45,000 |
37,500 |
|
General reserve |
22,500 |
15,000 |
9,000 |
|
Retained earnings |
112,500 |
90,000 |
37,500 |
|
322,500 |
150,000 |
84,000 |
|
|
Current liabilities |
|||
|
Trade payables |
99,000 |
18,750 |
25,500 |
|
Taxation payable |
22,500 |
5,250 |
6,000 |
|
Current account – Ant |
11,250 |
2,250 |
|
|
Total equity and liabilities |
444,000 |
185,250 |
117,750 |
Statements of comprehensive income for the year ended 31 December 20X9
|
$ |
$ |
$ |
|
|
Sales |
225,000 |
120,000 |
75,000 |
|
Cost of sales |
67,500 |
60,000 |
30,000 |
|
Gross profit |
157,500 |
60,000 |
45,000 |
|
Expenses |
70,500 |
37,500 |
30,000 |
|
Dividends received |
7,500 |
NIL |
7,500 |
|
Profit before tax |
94,500 |
22,500 |
22,500 |
|
Taxation |
22,500 |
5,250 |
6,000 |
|
Profit for the year |
72,000 |
17,250 |
16,500 |
|
Dividends paid in year |
30,000 |
7,500 |
6,000 |
Ant Co. acquired 80% of the shares in Bug Co. on 1 January 20X7 when the balance on the retained earnings of Bug Co. was $45,000 and the balance on the general reserve of Bug Co. was $12,000. The fair value of the non-controlling interest in Bug on 1 January 20X7 was £21,000. Group policy is to measure non-controlling interests using method 2. Ant Co. also acquired 25% of the shares in Nit Co. on 1 January 20X8 when the balance on Nit’s retained earnings was $22,500 and the general reserve $6,000.
During the year Ant Co. sold Bug Co. goods for $12,000, which included a mark-up of one-third. 90% of these goods were still in inventor y at the end of the year.
Required:
(a) Prepare a consolidated statement of comprehensive income for the year ending 31/12/20X9, including the associated company Nit’s results.
(b) Prepare a consolidated statement of financial position at 31/12/20X9, including the associated company.
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