1 MAX Ltd is a specialists' wholesaler. Below is their trial balance as at 30 June 2022: Ordinary share capital: E shares Share premium DR - CR-E 1,000,000 120,000 General reserve Profit and loss account Sales Purchases 48,000 139,750 5,090,370 2,475,910 Returns outward Returns inward Carriage inwards 121,220 136,200 6,340 Carriage outward 43,790 Inventory 336,720 Warehouse wages (average number of workers 59) 410,240 Salespeople's salaries (average number of workers 21) 305,110 Wages and sales: administrative 277,190 Plant and machinery 610,000 Motor vehicle hire 84,770 Accumulated depreciation: plant and machinery 216,290 General distribution expenses 27,130 General administrative expenses 47,990 Director's remuneration Ordinary dividend 195,140 375,000 Rent receivable 37,150 Trade debtors 1,623,570 Cash at bank and in hand 179,250 Trade creditors 304,570 Bills of exchange payable 57,000 Total 7,134,350 7,134,350 The following information is available: 1. Stock as at 30 June 2022: 412,780 consists of goods for resale. 2. Plant and machinery are apportioned: Distribution 60 per cent; Administrative 40 per cent. 3. Accrued auditor's remuneration is 71,000. 4. Plant and machinery is depreciated @ 25% on cost. 5. Of the motor hire, 55,000 is for distributive purposes 6. Corporation tax on profits, at a rate of 35 per cent, is estimated to be 238,500 7. Plant of 75,000 was bought during the year. 8. Director's remuneration were as follows: Marketing 43,000 Chairman 46,640 Managing 51,500 Finance 46,000 187,140 While the Chairman, Managing Director and Finance Director's remuneration are considered as administrative costs, the Marketing Director's remuneration is considered as part of the distribution costs. In, all directors drew 2,000 as directors' fees. Required: Prepare the following financial statements for the year ended 30 June 2022: a) Income statement. b) Statement of Financial Position. 2