The following balances have been extracted from the books of Mitchell plc on 31 July 2002. From them draw up (i) a detailed income statement for internal use, for the year ending.

31 July 2002, also (ii) an income statement for publication for the year to that date.

(a) Inventory at 31 July 2002 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 33% 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.

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Purchases Revenue Returns inwards Returns outwards Carriage inwards Wages-productive Discounts allowed 1,310,000 1,790,000 29,000 57,000 10,000 109,000 11,000 Discounts received 15,000 Inventory 31 July 2001 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 2001 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 Administrative Plant and machinery: Distribution Loan note interest payable 45,000 18,000 13,000 7,000 Income from shares in group entities 8,000 Income from associates and joint ventures 5,000 Preference dividend paid 20,000 Profit on disposal of investments 14,000 Tax on profit on disposal of investments Ordinary dividend paid 3,000 110,000