The following is the balance sheet (in abbreviated form) of Projections Ltd for last year:

The following plans have been made for next year:
1 Sales 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 stock will be bought during the year, all on credit. Purchases will be made at a steady rate over the year and creditors 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 Stock at the end of the year is expected to be double what it was at the beginning of the year.
5 Operating expenses, other than depreciation, are expected to total £52 000, of which £5000 will remain unpaid at the end of the year.
6 During the year, the tax noted in the start-of-the-year balance sheet will be paid.
7 The tax rate can be assumed to be 25 per cent. The tax will not be paid during the year.
8 A dividend of £10 000 will be paid during the year.
Prepare a projected profit and loss account for next year and a balance sheet as at the end of next year, to the nearest £1000.

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Balance sheet as at 31 December Non-current assets Cost Less: Accumulated depreciation Current assets 000 000 290 (110) 180 Stock Debtors Cash 26 35 5 66 Current liabilities Trade creditors (21) Taxation (27) (48) Net current assets 18 198 Equity Share capital Retained profit 150 48 198