The following financial statements of Andy Ltd and its subsidiary Irons Ltd have extracted from their financial records at 30 June 2023.

• Other information
  Andy Ltd acquired its 100 per cent interest in Irons Ltd on 1 July 2016—that is, seven years earlier. The cost of the investment was $500 000. At that date the capital and reserves of Irons Ltd were:At the date of acquisition all assets were considered to be fairly valued.

• During the year Andy Ltd made total sales to Irons Ltd of $81 250, while Irons Ltd sold $65 000 in inventory to Andy Ltd.
• The opening inventory in Andy Ltd as at 1 July 2022 included inventory acquired from Irons Ltd for $52 500 that cost Irons Ltd $43 750 to produce.
• The closing inventory in Andy Ltd includes inventory acquired from Irons Ltd at a cost of $42 000. This cost Irons Ltd $35 000 to produce.
• The closing inventory of Irons Ltd includes inventory acquired from Andy Ltd at a cost of $15 000. This cost Andy Ltd $12 000 to produce.
• The management of Andy Ltd believe that goodwill acquired was impaired by $3750 in the current financial year. Previous impairments of goodwill amounted to $200000.
• On 1 July 2022 Andy Ltd sold an item of plant to Irons Ltd for $145 000 when its carrying amount in Andy Ltd’s accounts was $101 250 (cost $168 750, accumulated depreciation $67 500). This plant is assessed as having a remaining useful life of six years. The Group has a policy of measuring its property, plant and equipment using the ‘cost model’. The group uses the straight-line method of depreciation.
• Irons Ltd paid $33 125 in management fees to Andy Ltd.
• The tax rate is 30 percent.

REQUIRED

Prepare the consolidated statement of financial position and consolidated statement of profit or loss and other comprehensive income of Andy Ltd and Irons Ltd as at 30 June 2023. Also provide a statement of changes in equity.

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Reconciliation of opening and closing retained earnings Sales revenue Cost of goods sold Gross profit Dividends received from Irons Ltd Management fee revenue Gain on sale of plant Expenses Administrative expenses Depreciation Management fee expense Other expenses Profit before tax Tax expense Profit for the year Retained earnings-1 July 2022 Dividends paid Retained earnings-30 June 2023 Statement of financial position Shareholders' equity Retained earnings Share capital Current liabilities Accounts payable Tax payable Non-current liabilities Loans Andy Ltd ($) Irons Ltd ($) 839 250 725 000 (580 000) (297 500) 259 250 427 500 116 250 33 125 43 750 (38 500) (30 625) (126 375) 256 875 (76 875) 180 000 399 250 579 250 (171 750) 407 500 407 500 437 500 100 000 236 000 1 181 000 (48 375) (71 000) (33 125) (96 250) 178 750 (52 750) 126 000 299 000 425 000 (116 250) 308 750 308 750 250 000 57 875 31 250 145 000 792 875