Comply plc produces financial statements to 30 June annually. At 30 June 2012 Comply plc's trial balance was as follows: 000 000 Sales revenue 14,776 Purchases 8,280 Inventory at 1 July 2011 1,390 Distribution costs 1,080 Administrative expenses 1,460 Deferred taxation 100 Land at valuation 10,500 Buildings at cost 8,000 Buildings depreciation at 1 July 2011 2,130 Plant and equipment at cost 12,800 Plant and equipment depreciation at 1 July 2011 2,480 Trade receivables and payables 4,096 2,240 Cash at bank 160 Dividends paid 100 Ordinary share capital 14,000 Share premium account 4,000 Revaluation reserve as at 1 July 2011 3,000 Retained earnings 3,140 10% debenture loan 2,000 47,866 47,866 NB: All the numbers in the trial balance are in 000s. All the numbers below are in s. The following matters remain to be adjusted for in preparing the financial statements for the year ended 30 June 2012. UU-FNE-4400-ZM -Financial Analysis 1. Closing inventory at 30 June 2012 amounted to 1,576,000 at cost. A review of inventory items revealed items which had cost 80,000 and which would normally sell for 120,000 were found to have deteriorated. Remedial work costing 20,000 would be needed to enable the items to be sold for 90,000. 2. Depreciation for the year is to be charged as follows: Buildings Plant and equipment 2 per cent per year on cost 20 per cent per year on cost Eighty per cent of the depreciation is to be charged to cost of sales, and 10 per cent each to distribution costs and administrative expenses. 3. The land is to be revalued to 12,000,000. No change to the value of the buildings was required. 4. Accruals and prepayments at 30 June 2012 were as follows: Distribution costs Accruals 190,000 Prepayments 120,000 Administrative costs 70,000 60,000 5. The debenture loan was taken out on 1 April 2012 and no interest has yet been paid on the loan. 6. Corporation tax for the year is estimated at 300,000. The deferred taxation provision is to be increased by 50,000. Required: a) Prepare a statement of comprehensive income, and a statement of changes in equity for Comply plc for the year ending 30 June 2012. (62 marks) b) Prepare a statement of financial position (balance sheet) for Comply plc as at 30 June 2012. (38 marks)