Financial statements Green light test

genesta

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.

KoopaCooper

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?

genesta

There is the task above answers. And "explanation" as well.
I just get the calculations/formula out of it...
Could you help?

genesta

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.

genesta

These are answers:
91,123
46,009
45,114

Just in case.. )

Zoynal98

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

genesta

Thank you!!!!
Somehow I got the answers but I did not like it.
Thank you again! Best wishes.