answer & explain please

2. (25 marks) The trial balance of Angel Limited at 31 December 2018 was as follows: You are given the following information: (i) Inventory, at the year end, cost 14,150. (ii) The company sold an item of furniture for 1,000. It was purchased in 2016 for 3,000. The cost and accumulated depreciation of this item remain in the trial balance figures. Furniture is depreciated at 20% on a straight-line basis. (iii) A bad debt of 1,500 is to be written off. (iv) The provision for bad debts is to be revised to 4% of remaining trade receivables. (v) Depreciation is to be provided as follows: Buildings: 2% per annum on a straight-line basis Fumiture: 20% per annum on a straight-line basis A full year's depreciation is provided in the year of acquisition while no depreciation is to be provided in the year of disposal. (vi) Corporation tax of 4,500 is to be provided. Required: Prepare an income statement and a statement of movements in equity for the year ended 31 December 2018 and a statement of financial position at 31 December 2018 for Angel Limited. (25 marks)