The following trial balance has been extracted from the books of Arran plc as at 31 March 2007:

Additional information:
1 Inventory at 31 March 2007 was valued at £150,000.
2 Depreciation for the year to 31 March 2007 is to be charged against administrative expenses as follows:

3 Assume that the basic rate of income tax is 30%.
4 Corporation tax of £180,000 is to be charged against profits on ordinary activities for the year to 31 March 2007.
5 £4,000 is to be transferred to the deferred taxation account.
6 The company proposes to pay a final ordinary dividend of 30p per share.

Required:
In so far as the information permits, prepare the company’s income statement for the year ending 31 March 2007 and a balance sheet as at that date in accordance with the Companies Acts and related accounting standards. Note: Income statement and balance sheet notes are not required, but you should show the basis and computation of earnings per share at the foot of the income statement, and your workings should be submitted.

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000 000 Administrative expenses 95 Called-up share capital (all ordinary shares of 1 each) 200 Cash at bank and in hand 25 Accounts receivable 230 Deferred taxation (at 1 April 2006) 60 60 Distribution costs 500 Non-current asset investments 280 Income from non-current asset investments 12 12 Interim dividend paid 21 Overprovision of last year's corporation tax 5 Land and buildings at cost 200 Land and buildings: accumulated depreciation at 1 April 2006 Plant and machinery at cost 30 400 Plant and machinery: accumulated depreciation at 1 April 2006 Retained profits (at 1 April 2006) 170 229 Sales Purchases Inventory at 1 April 2006 1,210 2,265 140 Trade accounts payable 130 3,101 3,101