6.8 The statements of financial position of Axis plc as at 31 December 2014 and 2015 and the income statement for the year ended 31 December 2015 were as follows:

Statements of financial position as at 31 December 2014 2015

£m £m £m £m ASSETS Non-current assets Property, plant and equipment Land and building at cost 130 130 Accumulated depreciation (30) 100 (32) 98 Plant and machinery at cost 70 80 Accumulated depreciation (17) 53 (23) 57 153 155 Current assets Inventories 25 24 Trade receivables 16 26 Short-term investments – 12 Cash at bank and in hand – 7 41 69 Total assets 194 224 EQUITY AND LIABILITIES Equity Share capital 100 100 Retained earnings 36 40 136 140 Non-current liabilities Borrowings – 10% loan notes 20 40 Current liabilities Trade payables 31 36 Taxation 7 8 38 44 Total equity and liabilities 194 224 Income statement for the year ended 31 December 2015

£m Revenue 173 Cost of sales (96)

Gross profit 77 Sundry operating expenses (24)

Deficit on sale of non-current asset (1)

Depreciation – buildings (2)

– plant (16)

Operating profit 34 Interest receivable 2 Interest payable (2)

Profit before taxation 34 Taxation (16)

Profit for the year 18