Adrian Frampton was considering the purchase of one of two businesses. However Frampton had only been provided with limited information about the businesses, as follows: Summarised financial information for the year ended 31st December 2018: Business Business 400,000 600,000 Cost of goods sold Administrative expenses Average stock at cost Working capital as at 31st December 2018 Selling and distribution expenses Proprietor's capital at 1st January 2018 Gross profit percentage mark-up on cost 50,000 40,000 90,000 15,000 60,000 50,000 250,000 35,000 350,000 200,000 20 25 Additional information: (1) Average stock had been calculated by using the year's opening and closing stocks. Subsequently it was discovered that Business Y had overvalued its stock on 31st December 2018 by 10,000. (2) Business X's administrative expenses included a payment for rent of 15,000 which covered a three-year period to 31 December 2020. (3) A sum of 2,500 was included in the administrative expenses of Business Y in respect of a holiday taken by the owner and his family. (4) Cash drawings for the year ended 31 December 2018 were: Business X 20,000 Business Y 25,000 The owners of the businesses had stipulated the following prices for their businesses: (5) Business X 190,000 Business Y 400,000 Required: (a) Based on the information available prepare comparative income statement for the year ended 31st December 2018