The following is an extract from the trial balance of Imecet at 31 October 2005:

$000 $000 Proper ty valuation 8,000 Factor y at cost 2,700 Administration building at cost 1,200 Deliver y vehicles at cost 500 Sales 10,300 Inventor y at 1 November 2004 1,100 Purchases 6,350 Factory wages 575 Administration expenses 140 Distribution costs 370 Interest paid (6 months to 30 April 2005) 100 Accumulated profit at 1 November 2004 3,701 10% Loan stock 2,000 $1 Ordinar y shares (incl. issue on 1 May 2005) 4,000 Share premium (after issue on 1 May 2005) 1,500 Dividends (paid 1 June 2005) 400 Revaluation reser ve 2,500 Deferred tax 650 Other relevant information:
(i) One million $1 Ordinar y shares were issued 1 May 2005 at the market price of $1.75 per ordinar y share.
(ii) The inventor y at 31 October 2005 has been valued at $1,150,000.
(iii) A current tax provision for $350,000 is required for the period ended 31 October 2005 and the deferred tax liability at that date has been calculated to be $725,000.
(iv) The proper ty has been fur ther revalued at 31 October 2005 at the market price of $9,200,000.
(v) No depreciation charges have yet been recognised for the year ended 31 October 2005.
The depreciation rates are:
Factor y – 5% straight-line.
Administration building – 3% straight-line.
Deliver y vehicles – 25% reducing balance. The accumulated depreciation at 31 October 2004 was $10,000. There were no new vehicles acquired in the year to 31 October 2005.
Required:

(a) Prepare the Income Statement for Imecet for the year ended 31 October 2005.

(b) Prepare the Statement of Changes in Equity for Imecet for the year ended 31 October 2005.
(The Association of International Accountants)