Black and Bury The following are the financial statements relating to Black, a limited liability company, and its subsidiary company Bury. STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X5 Black Bury $'000 $'000 245,000 95,000 (140,000) (52,000) 105,000 43,000 (12,000) (10,000) Administrative expenses Sales revenue Cost of sales Gross profit Distribution costs (55,000) (13,000) Dividend income from Bury Profit before tax Tax Profit for the year 7,000 45,000 20,000 (13,250) (5,000) 31.750 15.000 STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X5 Black Bury $'000 $'000 $'000 $'000 Assets: 110,000 21.000 40,000 Investments: 21,000,000 $1 131,000 40,000 13,360 3,890 Non-current assets: Property, plant and equipment ordinary shares in Bury at cost Current assets Inventory, at cost Trade receivables and dividend receivable Bank Total current assets Total assets 14,640 3,500 6,280 2,570 31,500 162,500 12,740 52,740 Equity and liabilities: Equity: $1 Ordinary shares Retained earnings 100,000 33,500 133,500 30,000 10,280 40,280 Current liabilities: Payables Dividend Total liabilities Total equity and liabilities 9,000 20,000 2,460 10,000 12.460 52,740 29,000 162,500 Additional information (a) Black purchased its $1 ordinary shares in Bury on 1 November 20X0. At that date the balance on Bury's retained earnings was $2 million. The fair value of the non-controlling interest at the date of acquisition was $11,800,000. (b) During the year ended 31 October 20X5 Black sold goods which originally cost $12 million to Bury. Black invoiced Bury at cost plus 40%. Bury still has 30% of these goods in inventory at 31 October 20X5. (c) Bury owed Black $1.5 million at 31 October 20X5 for some of the goods Black supplied during the year Required Prepare the following financial statements for Black Group. a) The consolidated statement of profit or loss for the year ended 31 October 20X5 b) The consolidated statement of financial position as at 31 October 20X5