Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are shown below: Keswick Co $000 8,400 (4,600) 3,800 (1,500) (700) 1,600 (600) 1,000 Derwent Co $'000 3,200 (1,700) 1,500 (510) (450) 540 Revenue Cost of sales Gross profit Distribution costs Administrative costs Profit before tax Тах (140) 400 Profit of the year During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At 31 May 20X6, 30% of these goods remained in Derwent Co's inventory. Task 1 Use the information above to complete the following financial statement: s00 Revenue Less: Cost of sales Gross profit Less: Distribution costs Administrative costs Profit before tax Less: Tax Profit for the year Attributable to: Equity owners of Keswick Co Non-controlling interest
Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are shown below: Keswick Co $000 8,400 (4,600) 3,800 (1,500) (700) 1,600 (600) 1,000 Derwent Co $'000 3,200 (1,700) 1,500 (510) (450) 540 Revenue Cost of sales Gross profit Distribution costs Administrative costs Profit before tax Тах (140) 400 Profit of the year During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At 31 May 20X6, 30% of these goods remained in Derwent Co's inventory. Task 1 Use the information above to complete the following financial statement: s00 Revenue Less: Cost of sales Gross profit Less: Distribution costs Administrative costs Profit before tax Less: Tax Profit for the year Attributable to: Equity owners of Keswick Co Non-controlling interest
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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Transcribed Image Text:Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 20X5. The summarised draft
statements of profit or loss for Keswick Co and Derwent Co for the year ended 31 May 20X6 are
shown below:
Keswick Co
Derwent Co
$000
8,400
(4,600)
3,800
(1,500)
(700)
$000
3,200
(1,700)
1,500
Revenue
Cost of sales
Gross profit
Distribution costs
(510)
Administrative costs
(450)
Profit before tax
1,600
(600)
540
Тах
(140)
Profit of the year
1,000
400
During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At
31 May 20X6, 30% of these goods remained in Derwent Co's inventory.
Task 1
Use the information above to complete the following financial statement:
Revenue
Less: Cost of sales
Gross profit
Less:
Distribution costs
Administrative costs
Profit before tax
Less: Tax
Profit for the year
Attributable to:
Equity owners of Keswick Co
Non-controlling interest
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