3 6 Lynx Plc acquired 80% of the ordinary share capital of Puma Ltd on 1 January 2020 when the balance on the retained earnings account of Puma Ltd amounted to 10,000,000 On 1 January 2020 Lynx Pic acquired 20% of the debentures of Puma Ltd. Lynx plc Consolidated Statement of Financial Position as at 31 December 2020 Lynx Plc Puma Ltd Assets 000's 000's Non-current assets Property, Plant and Equipment 180,000 34,000 Investment in Puma Ltd 48,000 Investments 58,600 6,500 286,600 40,500 Current assets Inventories 26.000 14,600 Trade receivables 29,900 35,400 Current account- Puma Ltd 800 Bank 17,800 5,100 74,500 55,100 Total assets 361,100 95,600 Equity Ordinary share capital 1 60,000 14,000 Share premium 80,000 23,600 Retained earnings 80,300 21,800 220,300 59,400 Liabilities - Non-Current liabilities Debentures 14,000 8,000 Liabilities - Current liabilities Trade payables 114,000 24,200 Taxation 12,800 4,000 Current account - Lynx Plo 140,800 36,200 361,100 95,600 Lynx Plc - Consolidated Statements of Profit or Loss for year ending 31 December 2020 Lynx Plc Puma Ltd 000's 000's Revenue 87 400 8,400 Cost of Sales 24,600 2,600 Gross Profit 62,800 5,800 Distribution expenses 5,600 900 Administrative expenses 11,800 600 Operating profit 45,400 4,300 Taxation 12,300 800 Profit after Tax 33,100 3,500 1 2 3. The following information is also given: The fair value of Puma Lid's property, plant and equipment at acquisition was 1,600,000 more than their book values respectively. This revaluation has not been reflected in the books of Puma Ltd. An impairment test at 31 December 2020 concluded that goodwill on consolidation was impaired by 1,800,000 During the year Lynx Plc sold goods to Puma Ltd for 2,000,000 which included a mark-up of 25%. At the end of the year 20% of these goods were still held in inventory On 28 December 2020 Puma Ltd sent a cheque for 800,000 to Lynx pic. However, due to the Christmas holidays, the cheque was not received until 4th January 2021. Required: Prepare: Showing clearly all of your workings, prepare the Consolidated Statement of Financial Position and consolidated Income Statement of Lynx Plc as at 31 December 2020. (28 marks) 4