=+Question I (Based on ICAI, P3 Summer 1996, Question 3)

The statement of comprehensive income of HOTPOT plc for the year ended 31 December 1995, and statement of financial position as at that date, is as follows:

Summarised Statement of Comprehensive Income for the Year Ended 31 December 1995 Notes €'000 Revenue 4,020 Cost of sales (1) (2,110)

Gross profit 1,910 Distribution costs (320)

Administrative expenses (1) (500)

Operating profit 1,090 Interest paid (300)

Income tax expense (360)

Net profit after taxation 430 726 INTERNATIONAL FINANCIAL ACCOUNTING AND REPORTING Balance Sheet as at 31 December 1995 1994 Notes €000 €’000 Assets Non-current assets Tangible assets (2) 9,470 7,420 Current assets \

Inventory 850 750 Receivables 2,275 1,980 Cash in hand and at bank 175 580 3,300 3,310 Total Assets E2770 10,730 Equity and Liabilities Equity Called up share capital (€1 ordinary shares) (4) 1,200 1,000 Share premium account ris afi 935 660 Retained profits ‘ 3,380 3,150 5,115 4,810 Non-current liabilities (5) 4000 2,000 9,115 6,810 Current liabilities (3) 3,655 3,920 Total Equity and Liabilities 12,770 10,730 Additional Information