1. Sparky Fireworks Ltd. The financial controller of Sparky Fireworks Ltd. has extracted the following trial balance from the ledger as at 31 March 2016.

Trial Balance as at 31 March 2016.DrCr000 000 Issued equity shares 1 1,000 8% irredeemable preference shares of 1 200 Trade receivables and trade payables 6,500 2,450 Bank 350 Inventory as at 1 April 2015 1,340 5% Loan notes 400 Sales 14,750 Interest income 35 Loan note interest (6 months to 30 September 2015) 10 Admin and general expenses, excluding salaries 1,230 Admin salaries 640 Distribution expenses 1,120 Purchases 7,530 Salaries associated with manufacture of goods 370 Directors remuneration 220 Motor expenses 65 Carriage inwards 40 Property costs 330 Allowance for irrecoverable debts 260 Goodwill 1,050 Freehold land, at cost 780 Motor vehicles, at cost 840 Equipment, at cost 930 Accumulated depreciation motor vehicles 520 Accumulated depreciation equipment 610 Retained earnings 3,120 23,345 23,345 The following items have not yet been adjusted for: i. The year end inventory count valued inventory at 1,980,000 (31 March 2016) ii. The companys depreciation policy is as follows: a. Motor vehicles 25% straight-line (nil residual value) b. Equipment 20% reducing balance c. Freehold land 0% . The company purchased a new machine during the year at a cost of 320,000. This transaction has not yet been entered in the books. Acquisitions are depreciated for a full year in the year of purchase. iii. An impairment review has shown 20% should be written off goodwill. iv. The credit controller has advised that a receivable of 45,000 should be written off and the Allowance for irrecoverable debts should be increased to 300,000. v. Corporation tax due on profits for the year has been estimated at 750,000.The loan notes are repayable in full in ten years time. Interest is paid in two equal instalments per annum. Required: Prepare an Statement of Profit and Loss for Sparky Fireworks Ltd for the year ended 31 March 2016 and a Statement of Financial Position at that date.