Calder Co makes cardboard packaging. On 1 October 2026 it acquired a subsidiary, Dunmore Co. The consolidated statement of profit or loss of the Calder group for the year ended 31 March 2027 and its consolidated statement of financial position at that date are shown below with the figures of Calder Co for the previous year, and ratios. Figures are in $000.

Note 1: On 1 October 2026 Calder Co acquired 80% of the equity shares of Dunmore Co for $18,000,000 in cash. The non-controlling interest is measured at fair value. Goodwill of $6,000,000 arose and has not been impaired. Dunmore Co makes specialist packaging for food and medical products and earns a gross profit margin of 40%. Note 2: The acquisition was financed by a 7% bank loan of $16,000,000 taken out on 1 October 2026, repayable in 2033, and the rest from Calder Co's cash. Legal and professional fees of $600,000 on the acquisition are included in administrative expenses. Calder Co's other bank loan of $5,000,000 is repayable in 2030. All bank loans are non-current liabilities. Note 3: For the whole year ended 31 March 2027 Dunmore Co's revenue was $24,000,000, of which $12,000,000 arose in the six months after 1 October 2026, and its operating profit was $4,400,000, of which $2,200,000 arose after 1 October 2026. Dunmore Co has no borrowings. Its profit after tax was $3,000,000 for the whole year and $1,500,000 after 1 October 2026 (income tax of $700,000 for that period). Only the post-acquisition amounts are in the consolidated figures. Note 4: The 2026 figures are those of Calder Co alone: it had no subsidiaries before 1 October 2026. Note 5: Calder Co paid dividends of $2,500,000 in each year. In the ratios, equity includes the non-controlling interest.