7. The following information was extracted from the accounting records of Clearwater Engineering Limited on 30 June 2016. Using this information, prepare: a) b the Income Statement for the year ending 30 June 2016 the Balance Sheet for the year ending 30 June 2016 Sales 32,344 Purchases 14,326 5,442 Inventory 1 July 2015 3,506 850 Salaries and wages Insurance Telephone Fuel Motor vehicles Machinery Trade/accounts receivable Trade/accounts payable Cash at bank Cash in hand 1,200 1,560 5,100 1,856 3,141 2,031 5,476 450 Capital 8,532 42,907 42,907 Note: Closing inventory amounted to 2,500. Clearwater Engineering Ltd Income Statement for the year ending 30 June 2016 Sales Less Cost of goods sold Opening inventory Add Purchases Less Closing inventory Gross Profit XXXX Less Expenses Operating profit XXXX Balance Sheet at 30 June 2016 Non-current assets Current assets Less Current liabilities Net Assets XXXX Capital account Opening capital balance Add Operating profit Capital XXXX