Boris Party-Pooper has run a successful shop for many years. He sells new and reconditioned bouncy castles with the help of a part-time assistant. The business has been profitable and has provided Boris with enough to live on. Boris is concerned that his business is in decline. The coronavirus pandemic forced his shop to close during the first lockdown. He was able to do 'online' sales but at a reduced level due to social distancing. He opened again when restrictions eased and things improved but then the subsequent lockdowns and restrictions have meant that general awareness of the existence of his business has declined. Sales of more expensive castles to party organisers are the more profitable end of Boris's business. His inventory of this type of castle are at a normal level at 28 February, which is Boris's year end. It is now early March 2022. Boris is anxious to get the annual accounts prepared so that he can assess the overall effects of the downturn in trade on his profitability. He is worried about both the immediate and the longer-term future of his business. A rival party shop is making inroads into the monopoly of his business. Boris provides the following list of figures for incorporation into the statement of profit or loss and statement of financial position. Castle Sales 180,000 Opening inventory 25,000 Castle Inflating machinery 25,000 Opening capital balance 1 March 2020 32,000 Castle Hiring Income (not sales) 8,000 Waste Disposal Costs. 12,000 Insurance 3,200 Electricity 2,500 Trade payables 8,500 Trade receivables 10,000 Drawings 19,000 Bank interest received 100 Purchases 112,500 Bank Balance (money at bank) 1,400) Castle Hiring direct costs. 2,500 Administration and sundry expenses. 3,500 Assistant's wages 12,000 Closing inventory* 16,500 Expected Useful life of machinery (years) 5 Residual Value of Machinery 5,000