3 Question 2 (answer all parts of the question) Energy Ltd is a wholesaler and distributor of electrical components. The most recent draft financial statements of the business included the following: Income Statement for the year m m Sales revenue 14.2 Cost of Sales: I Opening inventories 3.2 Purchases 8.4 Cost of goods available for sale 11.6 Less: Closing inventories Cost of goods sold Gross profit Administration expenses Distribution expenses Operating profit Finance costs Profit before taxation 3.8 7.8 (7.8) 6.4 (3.0) (2.1) 1.3 (0.8) 0.5 Tax (0.2) Profit for the period 0.3 Statement of Financial position as at the end of the year m ASSETS Non-current assets Property, plant and equipment Land and buildings Equipment Motor vehicles Current assets Inventories Trade receivables Cash at bank 3.8 0.9 0.5 5.2 8615 3.8 3.6 0.1 7.5 3307