Question 4 On 1 January 2022, Purple Bhd acquired 75% of the issued ordinary share capital of Green Ltd which is situated in Wonderland where the currency is W. The reserves of Green on that date were W1 million. The financial statements of Purple and Green for the year ended 31 December 2022 are as follows: Statements of profit or loss for the year ended 31 December 2022 Revenue Cost of sales Gross Profit Depreciation costs Administrative expenses Net Profit for the year 4 Purple RM'000 Green W'000 BAC305/03 5,500 (3,000) 2,000 (800) 2,500 1,200 (400) (300) (600) (500) 1,500 400 Statements of financial position as at 31 December 2022 Non-Current Assets Property, plant and equipment Investment in Green Current assets Inventory Receivables Bank Total Assets Purple Green RM'000 W'000 3,000 3,000 1,200 Nil 4,200 3,000 500 100 900 500 300 200 5,900 3,800 Equity and liabilities Equity Equity shares (Purple: 2.5m. Green: 2.0m) 2,500 2,000 Retained earnings brought forward 1,700 1,000 Profits for the year 1,500 400 5,700 3,400 Current liabilities 200 400 Total equity and liabilities 5,900 3,800 The following information is relevant: (i) The opening and closing inventory for both companies is: Purple RM'000 Green W'000 Opening inventory 500 100 Closing inventory 500 100 (ii) The exchange rate to be used is as following: RM W 1 January 2022 1 3 Average rate for the year 1 2.5 31 December 2022 1 2 Date of opening inventory was purchased Date of closing inventory was purchased 1 2.25 1 3 1 January 2019 date on which property, plant and equipment were acquired 1 5 BAC305/03 Required: By assuming the subsidiary's functional currency is Ringgit Malaysia (RM), prepare the consolidated statement of financial position for Purple Group as at 31 December 2022. [15 marks]