Question 2: Set out below are the draft income statements of Sam and its subsidiary company Frank for the year ended 31 December 2007. On 1 January 2006 Sam purchased 100% ordinary shares in Frank at a cost of $170,000. The issued share capital of Frank is 100,000 $1 ordinary shares. At that date the income statement of Frank showed a credit balance of $60,000. Sam Frank $000 $000 Revenue 600 300 Cost of sales (360) (140) Gross Profit 240 160 Operating Cost (93) (45) Operating Profit 147 115 Interest Payable (3) Profit before tax 147 112 Tax (50) (32) Net profit 97 80 Following information is Relevant: During the year Frank sold goods to Sam for $30,000, making a mark-up of 25%. Only 60% of these goods were sold before the end of the year, the rest were still in inventory. Required: Prepare consolidated statement of comprehensive income as at 31st December 2007. (15 marks)