The following is the statement of financial position (in abbreviated form) of Projections Ltd as at the end of this year:

The following plans have been made for next year:
1 Revenue is expected to total £350,000, all on credit. Sales will be made at a steady rate over the year and two months€™ credit will be allowed to customers.
2 £200,000 worth of inventories will be bought during the year, all on credit. Purchases will be made at a steady rate over the year and suppliers will allow one month€™s credit.
3 New non-current assets will be bought, and paid for, during the year at a cost of £30,000. No disposals of non-current assets are planned. The depreciation expense for the year will be 10 per cent of the cost of the non-current assets owned at the end of the year.

4 Inventories at the end of the year are expected to have a value double that which applied at the beginning of the year.
5 Operating expenses, other than depreciation, are expected to total £52,000, of which £5,000 will remain unpaid at the end of the year.
6 During the year, the tax noted in the start of the year statement of financial position will be paid.
7 The tax rate can be assumed to be 25 per cent of operating profit. The tax will not be paid during the year.
8 A dividend of £10,000 will be paid during the year.
Required:
Prepare a projected income statement for next year and a statement of financial position as at the end of next year, to the nearest £1,000.

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Statement of financial position as at 31 December ASSETS £000 Non-current assets Cost 290 Accumulated depreciation (110) 180 Current assets Inventories 26 Trade receivables 35 Cash 5 66 Total assets 246 EQUITY AND LIABILITIES Equity Share capital Retained earnings 150 48 198 Current liabilities Trade payables Taxation (payable during next year) 21 27 48 Total equity and liabilities 246