6.23 LO5 ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

are as follows:

???????????????????????????????????????????????????????? ????????????????????????????????????????????????????????????

Current assets 800 4,000 Non-current assets 1,600 48,000

???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 58,000 60,400 52,000 Current liabilities 400 2,000

????????????????????????????????????????????????????????????????????????????????????????

???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 40,000 ????????????????????????

???????????????????????????????? 20,000 20,000 60,400 52,000 The following information is also available:

1 Matt Ltd acquired the shares in James Ltd on 31 December 2016 when the reserves of James Ltd were $10 million.

2 During 2017, Matt Ltd sold goods that had cost $300,000 to produce to James Ltd for $400,000.

At 31 December 2017, James Ltd still had half of these goods in stock, valued at cost to James Ltd, and included in current assets.

3 At 31 December 2017, James Ltd owed Matt Ltd $200,000. This amount had been included in the current assets and current liabilities of Matt Ltd and James Ltd respectively.

No dividends were paid by either company in 2016 or 2017, and none is proposed.

Prepare a consolidated balance sheet as at 31 December 2017.

1 What do you understand by the term ‘cash and cash equivalents’ in the consolidated balance sheet (statement of financial position)?