The summarised Statement of Profit or Loss of Cello plc and Viola Ltd for the year ended 31 December 2019 are as follows: Sales Cost of sales Gross profit Other operating income Other operating expenses Operating profit Investment Income Interest payable and similar charges Profit before taxation Taxation Profit after taxation Cello ple Viola Ltd '000 '000 5,670 7,545 (2,268) (2,820) 3,402 4,725 360 (1,701) (2,544) 2,061 2,181 95 (567) (756) 1,589 1,425 (279) (540) 1,310 885 The following information is also available: 1. Cello plc acquired a 60% of the ordinary shareholding in Viola Ltd on 1 January 2019. 2. During the year Cello plc sold inventory worth 30,000 to Viola Ltd. Cello plc has sold these at their standard mark- up on cost of 25%. One-third of this inventory remains unsold by Viola Ltd at the financial year-end. 3. An annual management charge of 15,000 is charged by Cello plc to Viola Ltd. Viola Ltd records this management charge in Other Operating Expense. Cello plc records all non-trading income under the Other Operating Income category in their Statement of Profit or Loss. 4. Retained profits of both companies at 31 December 2018 are as follows: Cello plc 1,555,000 credit Viola Ltd 455,000 credit 5. An ordinary dividend of 90,000 has been approved by a majority of shareholders of Viola Ltd at their latest AGM. Viola Ltd has not yet accounted for the proposed dividend. However, Cello ple has accounted for its dividend receivable from Viola Ltd in their Investment Income category in their Statement of Profit or Loss. Requirement: Prepare the Consolidated Statement of Profit or Loss of the Cello Group for the year ended 31 December 2019. Total 40 marks Question 2