The following information is available:

i$)$ On $1$ January $2023$ Woodbank Ltd acquired a controlling interest in Shaw Co for $50$

million. It paid for the acquisition through the issue of additional $10\%$ loan notes and

by using some of its cash reserves. Shaw Co was an unincorporated entity and its

results $($for three months from $1$ January $2023$ to $31$ March $2023)$ are included in

Woodbank Ltd$\text{'}$s financial statements for the year ended $31$ March $2023.$ There were

no other purchases or sales of non$-$current assets during the year ended $31$ March

$2023.$

ii$)$ Extracts of the results $($for three months$)$ of the previously separate business of

Shaw Co which are included in Woodbank Co's statement of profit or loss for the

year ended $31$ March $2023$ are:

$000$

Revenue $30,000$

Cost of sales $(21,000)$

Gross profit $9,000$

Distribution costs $(2,000)$

Administrative expenses $(2,000)$

Required:

a$)$ Calculate the equivalent ratios for Woodbank Ltd for the year ended $31$ March

$2023.$ Shown below are the financial statements of Woodbank Ltd for its most recent two years.

STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED $31$ MARCH

Revenue

Cost of sales

Gross profit

Distribution costs

Administrative expenses

Finance costs $-$ loan note interest

Profit before tax

Income tax expense

Profit for the year

STATEMENTS OF FINANCIAL POSITION AS AT $31$ MARCH

ASSETS

Non$-$current assets

Property, plant and equipment

Goodwill

Current assets

Inventories

Trade receivables

Cash and cash equivalents

Total assets

EQUITY AND LIABILITIES

Equity

Equity shares of $1$ each

Retained earnings

Non$-$current liabilities

$10\%$ loan notes

Current liabilities

Trade payables

Current tax payable

Total equity and liabilities

$2023$

$2022$

${}^{\text{'}}000$

${}^{\text{'}}000$

b$)$ Calculate, as far as information permits, the equivalent ratios for Woodbank Ltd

for the year ended $31$ March $2023$ excluding the effects of the purchase of Shaw

Co$.$

c$)$ Assess the comparative financial performance and position of Woodbank Ltd for

the year ended $31$ March $2023.$ Your answer should refer to the effects of the

purchase of Shaw Co$.$