On 1 April 2017, Nice plc acquired 320,000 shares in Cannes Ltd. On that date Nice plc also acquired 30% of the shares in St Tropez Ltd. Extracts from Statements of Changes in Equity for year ended 31 December 2017 Nice pic Cannes Ltd St Tropez Lid C000 000 000 Opening Balance 1.1.2017 3.545 2.230 860 Profit for the period 850 880 280 Closing Balance 31.12.2017 4.305 3.110 1,140 Statement of Financial position as at 31" December 2017 Nice pic Cannes Lid St Tropez Lad C000 000 000 000 000 000 Non-current assets Property plant and equipment 2.430 040 810 Investment in Cannes Ltd. 3.215 Investment in St Tropez Ltd 500 Current assets Inventories 7.370 3.630 Receivables 8.400 2.820 980 690 Bank 3,850 19.620 06.450 110 1,780 25.765 7.390 2.500 Equity and abilities Share capital 12.000 400 250 (1 shares) Share Premium Retained Earings 4.000 550 250 4,395 3.110 1,140 20.395 4,000 1,640 Current liabilities Trade payables 4,900 24201 760 Taxation 300 280 120 Bank overdraf 05370 6301.330 R 70 950 25.765 7.390 2.590 i. All profits and expenses accrue evenly through the year ended 31 December 2017. ii. During the year to 31 December 2017, Nice plc sold goods to Cannes Ltd for 450,000. Nice plc set its prices at cost plus 50%. 30% of these goods were included in the inventories of Cannes Ltd at 31" December 2017. iii. None of the companies paid dividends during the year ended 31 December 2017. Question 1 continued Continued/