Mr Sloppy has left you a list of balances with instructions to prepare a balance sheet and profit and loss account in standard UK format. He has left you with no further instructions.

You are required:
(i) To produce a balance sheet and profit and loss account as requested.
(ii) To explain how the figures in the profit and loss account are related to those in the balance sheet. On

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Accumulated profit at beginning of the year 426 000 Accumulated depreciation 80 000 Administrative expenses 43 000 Cash Corporation tax Cost of sales Current liabilities Debtors Dividends paid Fixed assets Interest paid Long-term liabilities 8 400 18 840 144 000 97 600 67.000 11 560 240 000 5 700 73 500 Owner's equity 50 000 Sales turnover 316 500 Selling and distribution costs 76 700 Stocks 45 000