The following information has been extracted from the accounts of Witton Way Ltd:

Additional information:
During the year to 30 April 19X6, the company tried to stimulate sales by reducing the selling price of its products and by offering more generous credit terms to its customers.
Required:

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Profit and Loss Account for the year to 30 April 19X5 19X6 000 000 Turnover (all credit sales) Less Cost of sales Gross profit 7,650 11,500 (5,800) (9,430) 1,850 2,070 Other expenses Loan interest (150) (170) (50) (350) Profit before taxation 1,650 1,550 Taxation (600) (550) Profit after taxation 1,050 1,000 Dividends (all ordinary shares) (300) (300) Retained profits 750 700