1 (Financial Statements, evaluating an investment opportunity) (15 marks) A year out of university, you have R10 000 to invest. A friend has started a Company, Sunrise Ltd. And asks you to invest in her company. You obtain the company's financial statements, which are summarized at the end of the first year as follows: SUNRISE LIMITED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 Revenue Expenses Net income cash Other Assets Total Assets 120 000 75 000 45 000 SUNRISE LIMITED BALANCE SHEET AS AT 31 DECEMBER 2020 Assets liabilities R 7000 liabilities 56 000 99 000 Equity Share Capital 50 000 R106 000 Total liabilities and Equity 106 000 Conversation with your friend turns up the following facts: a. Revenue and Receivables of R25000 were overlooked and omitted 6 Page PBA4807 MAY/JUN 2022 PORTFOLIO EXAMINATION b. Advertising costs of R45 000 were recorded as assets. These costs should have been expensed. Sunrise limited paid cash for these expenses and recorded the cash payments correctly c. The company owes an additional R10 000 for accounts payable Required 1. Prepare corrected financial statements (10.5)