A The following balances have been extracted from the books of Mitchell plc on 31 July 2012. From them draw up (i) a detailed income statement for internal use, for the year ending 31 July 2012, also (ii) an income statement for publication for the year to that date.

\begin{tabular}{lr}

& \\

Purchases & $1,310,000$ \\

Revenue & $1,790,000$ \\

Returns inwards & 29,000 \\

Returns outwards & 57,000 \\

Carriage inwards & 10,000 \\

Wages - productive & 109,000 \\

Discounts allowed & 11,000 \\

Discounts received & 15,000 \\

Inventory 31 July 2011 & 317,000 \\

Wages and salaries: Sales and distribution & 41,000 \\

Wages and salaries: Administrative & 62,000 \\

Motor expenses: Sales and distribution & 26,000 \\

Motor expenses: Administrative & 8,000 \\

General distribution expenses & 7,000 \\

General administrative expenses & 6,000 \\

Rent and business rates (see Note (c)) & 17,000 \\

Directors' remuneration & 35,000 \\

Retained profits 31 July 2011 & 141,000 \\

Advertising & 19,000 \\

Bad debts & 3,000 \\

Hire of plant and machinery (see Note (b)) & 14,000 \\

Motor vehicles at cost: Sales and distribution & 45,000 \\

Plant and machinery: Distribution & 18,000 \\

Loan-note interest payable & 13,000 \\

Income from shares in group entities & 7,000 \\

Income from associates and joint ventures & 8,000 \\

Profit on disposal of investments & 5,000 \\

Tax on profit on disposal of investments & 20,000 \\

Ordinary dividend paid & 14,000 \\

& 3,000 \\

\hline

\end{tabular}

Notes:

(a) Inventory at 31 July $2012 £ 303,000$.

(b) The hire of plant and machinery is to be apportioned: productive $£ 12,000$, administrative $£ 2,000$.

(c) Rent and business rates to be apportioned: distribution $3 / 4$, administrative $1 / 4$.

(d) Motors are to be depreciated at $331 / 3 \%$ on cost; plant and machinery to be depreciated at $10 \%$ on cost.

(e) Auditors' remuneration of $£ 15,000$ to be accrued.

(f) Corporation tax on profit from ordinary activities for the year is estimated at $£ 29,000$, excluding tax on disposal of investments.

(g) Transfer $£ 50,000$ to general reserve.