1. Create a statement of financial position for this income statement.

Extracts from the income statement for the year ended 31 December 2021

2021 2020

R R

Sales 248 230 000 241 000 000

Cost of sales (157 580 000) (144 400 000)

Gross Profit 190 650 000 96 600 000

Bad Debts (5 100 000) (4 500 000)

Depreciation (19 800 000) (20 100 000)

Research and development (10 200 000) (11 100 000)

Other operating costs (28 750 000) (26 700 000)

Operating profit 26 800 000 34 200 000

Finance charges (12 750 000) (10 800 000)

Profit before tax 14 050 000 23 400 000

Extracts from the Balance Sheet as at 31 December 2021

2021 2020

R R

Trade receivables 51 000 000 42 900 000

Total assets 279 900 000 264 900 000

Shareholders equity 152 200 000 142 100 000

Bank overdraft 127 500 000 102 800 000