Set out below are the draft statements of profit or loss of P and its subsidiary S for the year ended 31 December 20X7.

On 1 January 20X6 P purchased 75% of the equity shares in S.

Revenue

Cost of sales

Gross profit

Operating expenses

Profit from operations

Finance costs

P

$000

300

(180)

120

(47)

73

S

$000

150

(70)

80

(23)

57

(2)

55

(16)

39

Profit before taxation

Tax

73

(25)

Profit for the year

48

During the year S sold goods to P for $20,000, making a mark-up of one third. Only 20% of these goods had been sold before the end of the year, the remainder is still in inventory.

Prepare the consolidated statement of profit or loss for the year ended 31 December 20X7.