Archer plc owns a number of subsidiaries, and prepares its consolidated financial statements to 31 December each year. During 2017 Archer plc purchased interests in Bow Limited and Arrow Limited. Draft statements of profit or loss and other comprehensive income for the year ended 31 December 2017 and statements of financial position as at that date for Archer Group (excluding Bow Limited and Arrow Limited), and for_Bow Limited and Arrow Limited are presented below.

O a STATEMENTS OF PROFIT OR Loss AND OTHER COMPREHENSIVE INCOME fe for the Year Ended 31 December 2017

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Archer Bow Group Limited Arrow Limited m m m Revenue 3,000 200 1,800 Cost of sales (1,800) (125) (900) Gross profit 1,200 75 900 Operating expenses (500) (25) (260) Operating profit 700 50 640 Interest payable (20) (5) (10) Profit before tax 680 45 630 Tax (200) (10) (190) Profit after tax 480 35 440 Dividends paid (180) (40) Retained earnings for the year 300 35 400 ASSETS STATEMENTS OF FINANCIAL POSITION as at 31 December 2017 Archer Group Bow Arrow Limited Limited m m m Non-current Assets Property, plant and equipment 2,200 40 2,100 Investment in Bow Limited 200 Investment in Arrow Limited 800 3,200 40 2,100