b. Fatima owns a small business selling building materials. On December 31, 2015 she extracted the following trial balance. Account name Debit ($) Credit ($) Sales Sales returns 321,090 4,748 Opening inventory 45,490 Purchases 171,274 Purchase returns 1,670 Non-current assets at cost: Freehold property 96,226 Equipment 21,080 Motor vehicles 17,000 Accumulated depreciation on: Equipment 2,600 Motor vehicles 5,120 Salaries and wages 7,060 Insurance 1,600 Motor expenses 2,000 Advertising expenses 1,284 Loan interest 3,000 Receivables 28,720 Allowance for receivables 1,972 Payables 24,260 Cash at bank 60,230 Bank loan 23,000 Capital 80,000 459,712 459,712 B291 Financial Accounting Page 2 of 6 14 JAN 2017 2016-2017/Fall The following information is relevant: 1- Closing inventory was valued at $39,656 2- Equipment is depreciated by 10% on straight-line basis. 3- Motor vehicles are depreciated by 15% on reducing balance basis. 4- Accrued wages at the end of 2015 amount to $1,660. 5- On October 1st, 2015 Fatima paid $1,200 for insurance which is valid until 31 September 2016. 6- Irrecoverable receivables of $1,200 need to be written off. 7- Fatima decides to increase the allowance for receivables to $2,572. 8- Fatima has taken goods worth $1,400 for her own use. Required: 1- Prepare Fatima's income statement for the year ended December 31, 2015. 2- Prepare Fatima's balance sheet as at December 31, 2015.