Trial balances of Cosmos Ltd and Rangers Ltd at 31 July 20X5 R Cosmos B B Sales 575,000 Rangers 320,000 Cost of sales 345,000 122,000 Trading stocks 40,000 24,000 Selling expenses 25,000 20,000 Salaries 30,000 22,000 Electricity/water 12,000 16,000 Telephone 8,500 6,700 Vehicle expenses 14,200 10,100 Insurance 12,000 8,500 Directors' fees 45,000 40,000 Repairs 9,200 5,500 Accountancy fees 6,500 5,000 Profit 1/8/20X4 35,000 30,000 Debtors 20,000 25,000 Creditors 13,400 12,000 General reserve 15,000 10,000 Plant 80,000 150,000 Depreciation 2,000 1,000 Accumulated Depreciation 16,000 12,000 R1 ordinary shares 250,000 200,000 140,000 shares in Rangers at cost 160,500 Freehold land 89,500 Bank balance 5,000 904.400 904,400 125,200 3,000 584.000 584.000 Notes 1. Cosmos acquired its interest in Rangers on 1 August 20X3 when the latter had the following reserves: General R5,000 Retained profit R10,000 2. Corporate taxation for the year ended 31 July 20X5 is at 30% of the net profits for both companies. 3.At the end of the year to 31 July 20X4, the goodwill that arose on the acquisition of Rangers, was tested for impairment. It was concluded that an impairment loss of R2,000 hand been incurred. In December 20X4, a further impairment test was carried out after which it was decided that there was no basis for retaining the balance of the goodwill as an asset. Required: Prepare the consolidated financial statements of Cosmos and its subsidiary for the year ended 31 July 20X5