On January 1, 2019, Belle Florist opened a store in an upmarket area of Soho, London. The business is owned by Boris Kimmel, the sole proprietor. During the year, Boris has kept a record of all transactions. On December 31, 2019, his records show that he has sold goods worth £280,000, which were purchased for £80,000 from vendors in Rotterdam, the Netherlands. He has withdrawn £42,000 as his annual salary. The business has paid £15,000 toward gas, electricity, and council taxes for the year. Lease payments for the office space rented were £24,000, including a refundable deposit of £4,000. Belle Florist employed two full-time shop assistants, each receiving annual salaries of £24,000 before tax. Depreciation expense on the office furniture and fixtures was £1,000 per month. They also have paid £2,200 toward interest and charges on an overdraft facility they have from their bankers. The business is supposed to pay an average tax rate of 25% during 2019.

a. Prepare an income statement for Belle Florist for the year ended December 31, 2019.

b. Evaluate the financial performance of the business for 2019.