Sophie Peters produces ladies’ designer wear. Her orderbooks are full and she counts among her customers many leading retailers in the city. Her problem, however, is that despite working three shifts a day, and stretching her capacity to the limits, she is unable meet the orders on time. She requires £180,000 to enhance production capacity and £200,000 more to clear her liabilities. She has prepared her draft Statement of financial position as shown. She reports her post reporting-date events which occurred prior to the approval of her financial statements as follows:

(a) On 11 April 2012 she raised £380,000 from a bank at 6% per annum interest, pledging machinery as collateral.

(b) Additional machinery, acquired for £180,000 on 15 April, improved her production capacity by 25%.

(c) On 3 April she received back from one of her retailers goods sold for £40,000 on 27 March. These goods were found to have been significantly damaged because of defective packing. The damaged goods have no sale value.

Required: 

Advise Sophie on how each of the events after the reporting period would affect what she includes in or adds as disclosure notes to her Statement of financial position as at 31 March 2012.

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Statement of financial position as at 31 March 2012 Non-current assets: Machinery Current assets: Inventory Trade receivable Cash and bank Capital Profit for the year Trade payable Salary accrued Rent accrued Advertising accrued £'000 116 248 6 £'000 640 (280) 360 370 730 £'000 120 58 178 468 42 24 18 730