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For example: -10234.35
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The statements of profit or loss for two entities, Drum and Disk, for the year ended 31 March 20X9 are presented below:
Cost of sales
Profit before tax
Profit for the year
The following notes are relevant to the preparation of the consolidated financial statements:
(i) Drum acquired a 60% interest in the equity shares of Disk on 1 August 20X8.
(ii) During the post‐acquisition period, Drum sold goods to Disk for $160,000 including mark‐up on cost of 25%. Half of these goods remained in the inventory of Drum at the year end.
(iii) All items of income and expense in Disk’s statement of profit or loss account accrued evenly during the year.
Operating profit Finance costs
Profit before taxation Income tax expense
Profit after tax for the year
Profit after tax attributable to: Owners of Drum Non‐ controlling interest
Note: Ratios should be calculated to two decimal places.
You have been advised that the gross profit margin of an entity, Atlas, was higher than that for Drum, and also that the net profit percentage of Atlas was lower than that for Drum.
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