The following financial statements of Andy Ltd and its subsidiary Irons Ltd have been extracted from their financial records at 30 June 2023. Andy Ltd ($) Irons Ltd ($) Reconciliation of opening and closing retained earnings Sales revenue 839 250 725 000 Cost of goods sold (580 000) (297 500) Gross profit 259 250 427 500 Dividends received from Irons Ltd 116 250 Management fee revenue 33 125 Gain on sale of plant 43 750 Expenses Administrative expenses (38 500) (48 375) Depreciation (30 625) (71 000) Management fee expense (33 125) Other expenses (126 375) (96 250) Profit before tax 256 875 178 750 Tax expense (76 875) (52 750) Profit for the year 180 000 126