Barton Ltd manufactures and sells garden ornaments. It prepares accounts to 31 December. The income statement for the year ended 31 December 2020 is as follows:

  
 

Sales Less cost of sales Gross profit Less costs: Wages and salaries Rent Utilities Depreciation Loss on disposal of fixed asset Telephone (note 1) Legal and professional fees (note 2) Provision for bad debts (note 3) Patent royalties Repairs and maintenance (note 4) Advertising Entertaining (note 5) Travel (note 6) Sundry expenses (note 7) Net profit '000 521.1 200 60 20 3 2 49 27 7 13.5 1.5 3 31.5 4.4 '000 1,800 (600) 1,200 (943) 257