Atlantic Ltd owns 100 per cent of Bakers Ltd, which in turn owns 100 percent of California Ltd. During the financial year, Atlantic Ltd sells inventory to Bakers Ltd at a sale price of $250,000. The inventory cost Atlantic Ltd $200,000 to produce. Within the same financial year, Bakers Ltd subsequently sells the same inventory to California Ltd for $300,000 without incurring any additional costs. At the end of the financial year, California Ltd has sold half of this inventory to companies outside the group for a sale price of $200,000. At the end of the financial year, half the inventory remains in the stock of California Ltd.

You are required to determine:

1. the value of sales revenue to be reported for the financial year in the consolidated financial statements of the group. You are also required to explain your calculation with necessary arguments. [10 + 5 Marks]
2. the value of ending inventory to be reported for the financial year in the consolidated financial statements of the group. You are also required to explain your calculation with necessary arguments. [05 +05 Marks]