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 Continent Plc Island Ltd River Ltd $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 Island Ltd River Ltd $000 $000 $000 Non-Current assets Tangible assets 82,800 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 3 of 7 Net assets 185,168 81,480 133,120 Ordinary shares ($1) 116,000 32,000 69,600 Share premium 8,000 6,400 12,000 Retained Earnings 61,168 43,080 51,520 185,168 81,480 133,120 The following information is relevant: 1. Continent Plc acquired 70% of the ordinary shares of Island Ltd on 1 January 2019 when Island`s reserves were: $000 Share premium 6,400 Retained earnings 19,200 2. At 1 January 2019 the tangible non-current assets of Island Ltd exceeded their book value by $ 2.4 M. This surplus has not been reflected in the financial statements of Island Ltd. At that date the average remaining useful life of noncurrent assets was 10 years. 3. Continent Plc acquired 40% of the ordinary shares of River Ltd on 1 January 2020 when the balance on River Ltd`s share premium account was $12M and its retained earnings were $ 26.4M. 4. During the current year, Island Ltd sold goods to Continent Plc at invoice value $2.88m, on which Island Ltd made a mark-up of 20%. One-half of these goods were still in the inventory of Continent Plc at 31 December 2020. 5. Goodwill on acquisition of Island Ltd has become impaired by $376,000 per annum since the date of acquisition. The premium arising on investment in River Ltd has become impaired by $160,000 since the date of investment. REQUIRED Prepare the consolidated statement of comprehensive income of Continent Plc Group for the year ended 31 December 2020 and a consolidated statement of financial position at that date. [