The financial statements of Harry Ltd and its subsidiary Olivia Ltd have been extracted from their financial records at 30 June 2023 and are presented below. Harry Ltd $ Olivia Ltd $ Sales 839 250 725 000 Cost of goods sold (580 000) (297 500) Gross profit 259 250 427 500 Dividends received 116 250 - Management fee revenue 33 125 Gain on sale of plant 43 750 Less Expenses Administration (38 500) (48 375) Depreciation (30 625) (71 000) Management fee - (33 125) Other expenses (126 375) (96 250) Profit before tax 256 875 178 750 Tax expense (76 875) (52 750) Profit after tax 180 000 126 000 Retained earnings 1 July 2022 399 250 299 000 579 250 425 000 Dividends paid (171 750) (116 250) Retained earnings 30 June 2023 407 500 308 750 Statement of financial position Harry Ltd $ Olivia Ltd $ Shareholders equity Retained earnings 407 500 308 750 Share capital 437 500 250 000 Current liabilities Accounts payable 57 875 Tax payable 100 000 31 250 Non-current liabilities Loans 236 000 145 000 1 181 000 792 875 Current assets Accounts receivable 74 250 77 875 Inventory 115 000 36 250 Non-current assets Land and buildings 198 750 407 500 Plant at cost 400 000 444 750 Accumulated depreciation (107 000) (173 500) Investment in Olivia Ltd 500 000 - 1 81 000 792 875 Additional information: Harry Ltd acquired 100 per cent interest in Olivia Ltd on 1 July 2016. The cost of the investment was $500 000. At that date the capital and reserves of Olivia Ltd were: $ Share capital 250 000 Retained earnings 200 000 450 000 At the date of acquisition all assets were considered fairly valued. During the year Harry Ltd made total sales to Olivia Ltd of $81 250, while Olivia Ltd sold $65 000 in inventory to Harry Ltd. The opening inventory of Harry Ltd as at 1 July 2022 included inventory acquired from Olivia Ltd for $52 500 that cost Olivia Ltd $43 750 to produce. The closing inventory in Harry Ltd includes inventory acquired from Olivia Ltd at a cost of $42 000. This cost Olivia Ltd $35 000 to produce. The closing inventory of Olivia Ltd includes inventory acquired from Harry Ltd at a cost of $15 000. This cost Harry Ltd $12 000 to produce. The management of Harry Ltd believe that goodwill acquired was impaired by $3 750 in the current financial year. Previous impairments of goodwill amounted to $20 000. On 1 July 2022 Harry Ltd sold an item of plant to Olivia Ltd for $145 000 when its carrying amount in Harry Ltds accounts was $101 250 having been depreciated by $67 500. This plant is assessed as having a remaining useful life of 6 years, The Group has a policy of measuring its property, plant and equipment using the cost model. The group uses the straight-line method of depreciation. Olivia Ltd paid $33 125 in management fees to Harry Ltd. The tax rate is 30%. Required 1.Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 30 June 2023. 2Prepare the consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position for Harry Ltd and its subsidiary, Olivia Ltd at 30 June 2023.