Tumora Co Case
Below are extracts from the statements of profit or loss for the Tumora group and Tumora Co for the years ending 31 December 20X7 and 20X6 respectively.
A. Calculate the gain on disposal which should have been shown in the consolidated statement of profit or loss for the Tumora group for the year ended 31 December 20X7.
B. Remove the results of Simon Co and the gain on disposal of the subsidiary to prepare a revised statement of profit or loss for the year ended 31 December 20X7 for Tumora Co only.
C. Calculate the equivalent ratios to those given for Tumora Co for 20X7 based on the revised figures in part (b) of your answer.
D. Using the ratios calculated in part (c) and those provided in the question, comment on the performance of Tumora Co for the years ended 31 December 20X6 and 20X7.