Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows: Big (€) Small (€) Sales revenue 800,000 500,000 Cost of sales 560,000 300,000 Gross profit 240,000 200,000 During the year 2021 Co Big sold goods to Co small for €150,000. These goods had cost Co Big €120,000. What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end: Sales revenue ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] Cost of sales ["740,000", "710,000", "860,000", "688,000"] Gross profit ["470,000", "440,000", "352,000", "410,000"]
Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows: Big (€) Small (€) Sales revenue 800,000 500,000 Cost of sales 560,000 300,000 Gross profit 240,000 200,000 During the year 2021 Co Big sold goods to Co small for €150,000. These goods had cost Co Big €120,000. What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end: Sales revenue ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] Cost of sales ["740,000", "710,000", "860,000", "688,000"] Gross profit ["470,000", "440,000", "352,000", "410,000"]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company Big owns 80% of Company Small. Their separate statements of profit or loss for the financial year ended on 31 December 2021 are as follows:
| Big (€) | Small (€) | |
| Sales revenue | 800,000 | 500,000 |
| Cost of sales | 560,000 | 300,000 |
| Gross profit | 240,000 | 200,000 |
During the year 2021 Co Big sold goods to Co small for €150,000. These goods had cost Co Big €120,000.
What amounts are reported on the consolidated statement of profit or loss for the year ended 31 December 2021 for the group if all the goods were still in the inventory of Small Co at the year-end:
| Sales revenue | ["1,180,000", "1,040,000", "1,300,000", "1,150,000"] |
| Cost of sales | ["740,000", "710,000", "860,000", "688,000"] |
| Gross profit | ["470,000", "440,000", "352,000", "410,000"] |
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