Company B (Income Statement, Statement of Financial Position and Statement of Changes in Equity)

The following balances were extracted from the ledger of Company B in respect of the year ended 31 March 20X7:

Sales revenue 5,300,000 cr

Cost of sales. 1,350,000. Dr

Dividends received 210,000 cr

Administrative expenses 490,000 Dr

Distribution costs 370,000 Dr

Interest payable 190,000 Dr

Dividends paid. 390,000 Dr

Property, plant and equipment (NBV) 4,250,000 Dr

Short term investments 2,700,00 Dr

Inventory. 114,000 Dr

Trade receivables. 418,000 Dr

Bank. 12,000 Dr

Trade payables. 136,000 Cr

Long term loans (repayable 20X9) 1,200,000 Cr

Ordinary share capital (1 nominal value) 1,500,000 Cr

Share premium. 800,000 Cr

Retained earnings. 1,138,000 Cr

Total Dr 10,284,000 Cr 10,284,000

Additional information:

1. The directors have proposed a final ordinary dividend of 10 pence per share.

2. Tax for the year ended 31 March 20X7 is estimated as 750,000

Required:

Using the information above you are required to prepare the following financial statements in a form that is suitable for publication (ie: in accordance with the requirements of IAS 1 (Revised)):

a) an income statement for the year ended 31 March 20X7

b) a statement of changes in equity for the year ended 31

March 20X7

c) statement of financial position at 31 March 20X7