1.Quiva limited has presented the following draft statement of financial position as at 31st July 2022 to you; Quiva Limited Draft statement of financial position As at 31st July 2022 Non- current assets Ksh.000 Ksh000 Property, plant and equipment at cost 16,000 Accumulated depreciation (6,250) 9.750 Investment at cost 52,000 61,750 Current assets Inventories 25,700 Accounts receivable (net) 31,780 Prepaid rent 200 Cash and cash equivalents 84,065 141,748 Total assets 203,498 Equity and liabilities Share capital 150,000 Accumulated profits 16,673 Non-current liabilities Notes payable 4.050 Current liabilities Accounts payable 14,620 2 Accruals 9,933 Corporate tax 4,129 Interest payable 93 Dividends payable 4,000 32,775 203,498 After perusal of related records, you identify the following; i) The accumulated profit as at 31st July 2021 amounted to Ksh 4,723,000. ii) Inventory as at 31st July 2023 was overstated by Sh 2,300,000. iii) Receipts of Sh 500,000 for goods to be delivered sometime in October 2022 was included in the sales figure for the year ended 31st July 2022.It is the companys policy to recognize revenue at point of sale. iv) The allowance for bad debts was to be equal to 5% of the accounts receivable balance as at 31st July 2022.The allowance for uncollectable bad debts provided amounted to Sh 1,718,000. v) Sh 30,000 with respect to the prepaid rent balance presented in the balance sheet had expired. Adjustment for the same had not been made. vi) A provision of Sh 180,000 in respect of audit fees has not been made. vii) Included in the depreciation charge for the year is depreciation amounting to Sh 450,000 provided using the straight line method. It should have been provided using reducing balance method at the rate of 10%. viii) Installment tax of Sh 252,000 had been paid during the year. The same has not been recorded in the books. Required; a) Prepare an income statement showing the correct profit or loss for the period ended 31st July 2022. b) The revised statement of financial position for Quiva limited.