Fallow fied acquired a 60% holding in Rusholme three years ago when Rusholme's retained earnings balance...

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Fallow fied acquired a 60% holding in Rusholme three years ago when Rusholme's retained earnings balance stood at $16,000. Both businesses have been very successful since the acquisition and their respective income statements for the year ended 30 June 20x8 are as follows: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Dividends from Rusholme Profit before tax Income tax expense Profit of the year STATEMENT OF CHANGES IN EQUITY (EXTRACT) Balance at 1 July 20x7 Dividends Profit for the year Fallowfield $'000 $ 403,400 -201.400 202.000 -16,000 -24,250 15,000 176,750 -61,750 115.000 Fallowfield Retained Earnings $ 163,000 -40,000 115.000 Rusholme $'000 $ 193,000 238.000 -92.600 100,400 -14,600 -17,800 0 68,000 -22,000 46,000 Rusholme Retained Earnings 61.000 -25,000 46.000 Balance at 1 July 20x8 Additional information During the year Rusholme sold some goods to Fallowfied for $40,000, including 25% mark up. Half of these items were still in inventories at the year-end. 82.000 Required Produce the consolidated income statement of Fallowfield Co and its subsidiary for the year ended 30 June 20x8, and an extract from the statement of changes in equity, showing retained earnings. Goodwill is to be ignored. Fallow fied acquired a 60% holding in Rusholme three years ago when Rusholme's retained earnings balance stood at $16,000. Both businesses have been very successful since the acquisition and their respective income statements for the year ended 30 June 20x8 are as follows: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Dividends from Rusholme Profit before tax Income tax expense Profit of the year STATEMENT OF CHANGES IN EQUITY (EXTRACT) Balance at 1 July 20x7 Dividends Profit for the year Fallowfield $'000 $ 403,400 -201.400 202.000 -16,000 -24,250 15,000 176,750 -61,750 115.000 Fallowfield Retained Earnings $ 163,000 -40,000 115.000 Rusholme $'000 $ 193,000 238.000 -92.600 100,400 -14,600 -17,800 0 68,000 -22,000 46,000 Rusholme Retained Earnings 61.000 -25,000 46.000 Balance at 1 July 20x8 Additional information During the year Rusholme sold some goods to Fallowfied for $40,000, including 25% mark up. Half of these items were still in inventories at the year-end. 82.000 Required Produce the consolidated income statement of Fallowfield Co and its subsidiary for the year ended 30 June 20x8, and an extract from the statement of changes in equity, showing retained earnings. Goodwill is to be ignored.