Question 2 On 29 February 2020, the statements of financial position of Avon Ltd and Stringer Ltd were as follows: Avon Stringer LTD LTD EOOO EOOO Non current assets: Property, plant and equipment 50,000 22,700 Investment in Stringer Ltd 23,000 73,000 22,700 Current assets: Inventory 7,000 2,400 Receivables 5,600 1,050 Cash 2,100 330 14,700 3,780 Total assets 87,700 26,480 Equity: Share capital f1 each 10,000 1,500 Retained earnings 58,300 11,280 68,300 12,780 Non current liabilities 7,500 7,700 Current liabilities 11,900 6,000 87,700 26,480On 1 March 2019, Avon Ltd purchased a 100% shareholding in Stringer Ltd for E23m in cash. Stringer Ltd's retained earnings at 1 March 2019 were $10.7 million. Neither company paid dividends during the year. 1. At the date of acquisition, the fair value of Stringer's assets was equal to their carrying amounts with the exception of the items listed below which exceed their carrying amounts as follows: -Inventory $600,000. -Plant and equipment (remaining useful life 5 years) $4,000,000. Stringer Ltd has not adjusted the carrying amounts or adjusted for depreciation as a result of the fair value exercise. The inventories had all been sold by the year end. 2. An impairment test conducted at the year end revealed that consolidated goodwill of Stringer Ltd had been impaired by $1,200,000. 3. On 1 October 2019, Stringer Ltd sold goods to Avon Lid for $300,000, at a gross profit margin of 40%. 20% of these goods had been sold by Avon Ltd as at 29 February 2020. Avon Ltd still owed Stringer for these goods as at the year end date. Required: Prepare the consolidated statement of financial position of the Avon group as at 29 February 2020