Betadon Sdn Bhd is a wholesale company which buys and sells low quality, high priced clothing. The clothes are purchased from a factory in Melaka. Betadon sells the clothes to retailers located all over the Klang Valley. Some of the company's account balances as at 31 December 2019 are shown below: RM Ordinary shares (RM2 per share) 4,000,000 5% redeemable preference shares 500,000 Retained earnings at 31 December 2018 500,000 10% debenture (due 2030) 120,000 Freehold land (cost) 3,000,000 Buildings (cost) 2,000,000 Equipment (cost) 600,000 Furniture and fittings (cost) 450,000 Accumulated depreciation at 31 December 2018 - buildings 800,000 - equipment 410,000 - furniture and fittings 240,000 Provision for doubtful debts at 31 December 2018 30,000 Preference dividend paid - interim 12,500 Ordinary dividends paid - interim 92,000 Debenture interest 6,000 Bank 376,000 Cash 146,500 Trade receivables 240,000 Trade payables 132,000 During the year ended 31 December 2019, Betadon had sales of RM3,800,000 and purchases of RM1,600,000 Inventory levels are not consistent over the years, the starting inventory being RM100,000 and the closing inventory RM300,000. Betadon does not treat their employees well. Although wages and salaries of RM300,000 for 2019 had been paid out, as at 31 December 2019 RM60,000 remain outstanding for wages and salaries. During 2019, Betadon incurred and paid for the following expenses: Advertising expenses RM240,000 Distribution expenses RM350,000 Administrative expenses RM917,250 General expenses RM31,750 Tax paid during the year was RM70,000. However, the tax expenses for the current year's profit is finalised as RM60,000. The second half year's debenture interest and final preference dividends have not been paid yet. Betadon will have to provide for these items. An invoice of RM14,000 from PWC for audit work carried out in 2019 was recently found by the accountant. The amount was still unpaid as at year end 2019. Betadon has a policy of depreciating non-current assets as following: Buildings 10% on cost Equipment 10% on reducing balance method Furniture and fittings 5% on cost. Since many of Betadon's customers were facing slowed down sales, the company decided to increase the provision for doubtful debts to RM33,000. At the same time, the directors decided to transfer RM24,000 to the general reserves account. To assure the equity shareholders that the company had performed well, the board of directors declared final ordinary dividends of 1 sen per share. Required: (a) Prepare the Statement of Profit or Loss for the year ended 31 December 2019. (23 marks) (b) Prepare the Statement of Financial Position as at 31 December 2019. (28 marks)