11.4 The following information has been taken from the accounts of Buttons Ltd for the year ended 30 September.

£
Revenue 950,000 Materials (220,000)
Wages and salaries (160,000)
Other expenses (95,000)
Depreciation (80,000)
Operating profit 395,000 Interest (45,000)
Profit before taxation 350,000 Taxation (110,000)
Profit for the year 240,000 During the year a dividend of £120,000 was announced and paid.

Required:

(a) Prepare a value added statement for Buttons Ltd for the year ended 30 September.

(b) State and comment upon the reasons why a business may present a value added statement to its shareholders in addition to an income statement.