From the following trial balance of Morse Ltd, prepare an income statement for the year ended 31 December 2013 and a statement of financial position at that date (not in a form suitable for publication).

Dr Cr £ £
Directors’ salaries 59,200 Wages of salesforce 65,230 Office salaries 34,900 Advertising and website charges 15,300 Finance costs 2,502 Sales delivery costs 632 Office expenses 33,897 Revenue 462,600 Opening inventory at 1 January 2013 14,900 Purchases 140,800 Share capital (50p nominal shares) 25,000 Dr Cr £ £
Share premium 15,000 Dividends paid 5,000 Bad debts written off 750 Retained earnings as at 1 January 2013 17,600 Delivery vehicles, cost as at 1 January 2013 143,600 Depreciation of delivery vehicles at 1 January 2013 27,800 Trade receivables 64,100 Trade payables 32,711 Bond (repayable in 2020) 11,600 Cash and cash equivalents 11,500 592,311 592,311 Notes:
1 Closing inventory at 31 December 2013 was £17,650.
2 Depreciation on delivery vehicles is chargeable at 30% on the diminishing balance basis.
3 £800 was owing for office expenses and £160 had been prepaid for website charges at 31 December 2013.
4 Taxation amounting to £24,000 is to be accounted for on the year’s profits.