RC Limited manufactures and sells non-perishable food products to the retail trade. A summary of the latest income statements and balance sheets is as follows: RC Limited: Income statements for the year ended 31 March

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Year 7 Year 8 '000 '000 Revenue Cost of sales Gross profit 183 170 71 55 112 115 Operating expenses 76 78 Operating profit 36 37 Finance costs: interest payable 4 Profit before tax 32 Taxation 8 Profit for the period 24 24 RC Limited: Balance sheets as at 31 March Non-current assets Year 7 '000 '000 Year 8 '000 '000 94 130 Current assets Inventory Receivables Bank 8 22 16 12 46 32 5522 15 Current liabilities Trade payables (8) (8) Other creditors and accruals (26) (19) (34) (27) Net current assets 12 5 106 135