H Ltd has one subsidiar y, S Ltd. The company has held a controlling interest for several years. The latest financial statements for the two companies and the consolidated financial statements for the H Group are as shown below:

Goodwill of £410,000 was written off at the date of acquisition following an impairment review.
Required:

(a) Calculate the percentage of S Ltd which is owned by H Ltd.

(b) Calculate the value of sales made between the two companies during the year.

(c) Calculate the amount of unrealised profit which had been included in the inventory figure as a result of inter-company trading and which had to be cancelled on consolidation.

(d) Calculate the value of inter-company receivables and payables cancelled on consolidation.

(e) Calculate the balance on S Ltd’s retained earnings when H Ltd acquired its stake in the company.

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Income statements for the year ended 30 September 20X4 H Ltd S Ltd H Group 000 000 000 Turnover 4,000 2,200 5,700 Cost of sales (1,100) (960) (1,605) 2,900 1,240 4,095 Administration (420) (130) (550) Distribution (170) (95) (265) Dividends received 180 Profit before tax 2,490 1,015 3,280 Income tax (620) (335) (955) Profit after tax 1,870 680 2,325 Attributable to: Equity shareholders of H Ltd Minority shareholders in S Ltd 2,155 170 2,325