Income statement for the year ended 31 March 2006

£000 Revenue 12,080 Cost of sales (6,282)

Gross profit 5,798 Labour costs (2,658)

Depreciation (625)

Other operating costs (1,003)

Operating profit 1,512 Interest payable (66)

Net profit before tax 1,446 Taxation (434)

Net profit for the year 1,012 Balance sheet as at 31 March 2006

£000 Non-current assets 2,728 Current assets Inventories 1,583 Receivables 996 Cash 26 2,605 Total assets 5,333 Equity Share capital (50p shares, fully paid) 750 Share premium 250 Retained earnings 1,468 2,468 Non-current liabilities Borrowings – Secured loan (2011) 300 Current liabilities Trade payables 1,118 Other payables 417 Tax 434 Borrowings – Overdraft 596 2,565 Total equity and liabilities 5,333 4.8 157 CHAPTER 4 ACCOUNTING FOR LIMITED COMPANIES (1)