Prestend is the parent company of Northon. The following are the statements of financial position for both companies as at 31 October 20X7 Prestend $'000 Northon Assets Non-current assets Property,plant and 4,200 3,300 equipment Investment: shares in 3,700 Northon at cost Current Assets Inventory 1,500 1,000 Receivables 1,800 800 Bank 600 300 Total assets 11,800 5,400 Equity & liabilities Equity $1 ordinary shares 9,000 4,000 Retained Earnings 600 400 9,600 4,400 Current liabilities Payable 1,220 200 Tax 980 800 Total equity & liabilities 11,800 5,400