3,300 1,500 Cost of sales (1,890) (900) Gross profit 1,410 600 Administrative expenses (315) (450) Dividend from Sark 72 – Profit before tax 1167
3,300 1,500 Cost of sales (1,890) (900) Gross profit 1,410 600 Administrative expenses (315) (450) Dividend from Sark 72 – Profit before tax 1167
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 48P
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Question
The following information relates to Dork Ltd and its subsidiary Sark Ltd. for the year ended 31 March 2018.
|
|
Dork Ltd. |
Sark Ltd. |
|
$'000 |
$000 |
|
|
Sales revenue |
3,300 |
1,500 |
|
Cost of sales |
(1,890) |
(900) |
|
Gross profit |
1,410 |
600 |
|
Administrative expenses |
(315) |
(450) |
|
Dividend from Sark |
72 |
– |
|
Profit before tax |
1167 |
150 |
|
Income tax expense |
(195) |
(30) |
|
Profit for the year |
972 |
120 |
|
Dividends paid |
|
72 |
|
Profit retained |
972 |
48 |
|
|
i. The issued share capital of the group was as follows. Dork Ltd.: 15,000,000 ordinary shares of $1 each. Sark Ltd.: 3,000,000 ordinary shares of $1 each.
ii. Dork Ltd. purchased 80% of the issued share capital of Sark Ltd. in 2010. At that time, the
Required:
A. Insofar as the information permits, prepare the Dork group consolidated income statement for the year to 31 March 2018, showing profit attributable to both owners of the parent and non-controlling interests.
B. An extract of the
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