The following financial statements of Andy Ltd and its subsidiary Irons Ltd have been extracted from their financial records at 30 June 2019.

Andy Ltd

Irons Ltd

($000)

($000)

Detailed reconciliation of opening and closing retained earnings

Sales revenue

839.25

725

Cost of goods sold

(580)

(297.5)

Gross profit

259.25

427.5

Dividends received from Irons Ltd

116.25

-

Management fee revenue

33

Profit on sale of plant

43.75

Expenses:

Administrative expenses

(38.5)

(48.375)

Depreciation

(30.625)

(71)

Management fee expense

-

(33)

Other expenses

(126.375)

(96.25)

Profit before tax

256.75

178.875

Tax expense

76.875

52.875

Profit for the year

179.875

126

Retained earnings-1 July 2018

399.25

299

579.125

425

Dividends paid

(171.75)

(116.25)

Retained earnings-30 June 2019

407.375

308.75

Andy Ltd

Irons Ltd

($000)

($000)

Statement of financial position

Current assets

Accounts receivable

74.125

47.875

Inventory

115

36.250

Non-current assets

Land and buildings

198.75

407.5

Plant at cost

400

444.75

Accumulated depreciation

(107)

(173.5)

Investment in Irons Ltd

500

-

Total Asset

1 180.875

762.875

Current liabilities

Accounts payable

57.875

Tax payable

100

31.25

Non-current liabilities

Loans

236

145

Shareholders' equity

Retained earnings

407.375

308.75

Share capital

437.5

220

1 180.875

762.875