(a) Below are the financial statements of Continent Plc, its subsidiary Island Ltd and associate River Ltd at 31 December 2020. Continent, Island and River are public limited companies. Statement of Comprehensive income for the year ended 31 December 2020 Island Ltd River Ltd Continent Plc $000 $000 $000 Revenue 112,000 78,000 54,960 Cost of sales (67,200) (46,800) (20,960) Gross profit 44,800 31,200 34,000 Operating expenses (15,760) (8,800) (4,960) Operating profit 29,040 22,400 29,040 Interest payable (2,800) (1,440) (560) Profit before tax 26,240 20,960 28,480 Income tax expense (10,800) (8,400) (3,360) Profit for the year 15,440 12,560 25,120 Retained earnings b/f 45,728 30,520 - 26,400 Retained earnings c/f 61,168 43,080 51,520 Statements of Financial Position at 31 December 2020 Continent Plc $000 Non-Current assets Tangible assets 82,800 Island Ltd River Ltd $000 $000 76,160 129,600 Investment in Scam Plc 43,880 Investment in Ask Plc 44,000 170,680 76,160 129,600 Current assets Inventories 12,800 8,160 6,240 Trade receivables 7,760 4,800 3,920 Cash 4,248 1,360 160 24,808 14,320 10,320 Amounts falling due within on one year Trade and other payables (10,320) (9,000) (6,800) Page 2 of 7