Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of £50,000. All of the goods remained in Frais' inventory. Fromage applied a margin of 20%. Extracts from the statement of profit or loss for the two entities are shown below: Fromage a. Revenue Cost of sales C. £000 1,000 e. (650) Revenue 1700 Cost of sales 840 What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1? Answer to the nearest £000 Revenue 1700 Cost of sales 860 d. Revenue 1550 Cost of sales 800 Frais £000 b. None of these options are correct Revenue 1750 Cost of sales 910 750 (250)
Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of £50,000. All of the goods remained in Frais' inventory. Fromage applied a margin of 20%. Extracts from the statement of profit or loss for the two entities are shown below: Fromage a. Revenue Cost of sales C. £000 1,000 e. (650) Revenue 1700 Cost of sales 840 What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1? Answer to the nearest £000 Revenue 1700 Cost of sales 860 d. Revenue 1550 Cost of sales 800 Frais £000 b. None of these options are correct Revenue 1750 Cost of sales 910 750 (250)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ee 498.
Transcribed Image Text:Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1,
Fromage sold inventory to Frais at a sales price of £50,000. All of the goods remained in Frais' inventory. Fromage applied
a margin of 20%.
Extracts from the statement of profit or loss for the two entities are shown below:
Fromage
a.
Revenue
Cost of sales
C.
£000
1,000
e.
(650)
Revenue 1700 Cost of sales 840
What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year
ended 31 December 20X1?
Answer to the nearest £000
Revenue 1700 Cost of sales 860
d.
Revenue 1550 Cost of sales 800
Frais
£000
b.
None of these options are correct
Revenue 1750 Cost of sales 910
750
(250)
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