35.7A Bill Smithson runs a second-hand furniture business from a shop which he rents. He does not keep complete accounting records, but is abie lu provide you with the following information about his financial position at 1 April 2015: Inventory of furniture 3,210; Trade accounts receivable 2,643; Trade accounts payable 1,598; Motor vehicle 5,100; Shop fittings 4,200; Motor vehicle expenses owing 432. He has also provided the following summary of his bank account for the year ended 31 March 2016: Balance at 1 April 2015 Cheques received from trade debtors Cash sales 2,420 44,846 3,921 Payments of trade accounts payable Electricity Telephone Rent Advertising Shop fittings Insurance Motor vehicle expenses Drawings Balance at 31 March 2016 22.177 1,090 360 2,000 1,430 2,550 946 2,116 16,743 1.775 51,187 51,187 All cash and cheques received were paid into the bank account immediately. You find that the following must also be taken into account: Depreciation is to be written-off the motor vehicle at 20% and off the shop fittings at 10%, calculated on the book values at 1 April 2015 plus additions during the year. At 31 March 2016 motor vehicle expenses owing were 291 and insurance paid in advance was 177. Included in the amount paid for shop fittings were: a table bought for 300, which Smithson resold during the year at cost, some wooden shelving (cost 250), which Smithson used in building an extension to his house. Other balances at 31 March 2016 were: f 4,012 2,445 4,063 Trade accounts receivable Trade accounts payable Closty Inventory of furniture the misung of Required: is know the (a) For the year ended 31 March 2016 (i) calculate Smithson's sales and purchases, is. (ii) prepare his statement of profit or loss. (b) Prepare Smithson's statement of financial position as at 31 March 2016. (Midland Examining Group: GCSE)