Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

Financial statements Green light test

Who knows what and how they have calculated the answers?

https://www.aatgreenlight.org.uk/Tests/test-results-view.aspx?AttemptID=3064877&QuestionNo=6

Thank you.

Comments

  • KoopaCooperKoopaCooper London, UKMAAT, AATQB Posts: 226
    Hi there,

    Unfortunately, the questions in the Green Light test change every time you re-sit the test (so you can't just memorise the answers).

    Could you reproduce the question and the answer they gave?
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  • genestagenesta Registered Posts: 24
    There is the task above answers. And "explanation" as well.
    I just get the calculations/formula out of it...
    Could you help?
  • genestagenesta Registered Posts: 24
    Hello again. Just now got time to continue green light tests.
    So here is the thing:

    Yak Plc acquired 80% of the issued share capital of Zubu Ltd on 1 April 20X0.
    Extracts from their statements of comprehensive income for the year ended 31 March 20X1 are shown below:

    Yak Plc Zubu Ltd
    Revenue 74,543 20,680

    Cost of sales (39,285) (10,524)

    Gross profit 35,258 10,156

    Additional data:
    During the year Zubu Ltd sold goods which had cost £3,200,000 to Yak Plc for £4,100,000. A third of these goods still remain in inventory at the end of the year.
    Complete the table below.
    Group consolidated statement of comprehensive income for the year ended 31 March 20X1

    £000
    Sales ..............
    Cost of sales ...............
    Gross profit ..............

    Please, resolve.
    Thank you in advance.
  • genestagenesta Registered Posts: 24
    These are answers:
    91,123
    46,009
    45,114

    Just in case.. :))
  • Zoynal98Zoynal98 MAAT, AATQB Posts: 65
    edited September 2017
    I'm assuming the extracts above on the Statement of Comprehensive Income are in thousands so £000.

    Consolidated Sales/Revenue:
    Yak plc: 74,543
    Zubu ltd: 20,680
    Adjustment: (4,100) (This is the inter company sale)
    Total: 91,123 (74,543 + 20680 - 4,100)

    Consolidated Costs:
    Yak plc: 39,285
    Zubu ltd: 10,524
    Adjustment: (3,800) (Workings: 4,100 - ((4,100 - 3,200) x 1/3)) <---- this is the unrealised profit adjustment
    Total: 46,009 (39,285 + 10,524 - 3,800)

    Consolidate Gross Profits:
    45,114 (91,123 - 46,009)

    Hope this helps
  • genestagenesta Registered Posts: 24
    Thank you!!!!
    Somehow I got the answers but I did not like it. :)
    Thank you again! Best wishes.
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