Credit 260,940 an Questions 1. Mr Brown, a sole trader, extracted the following trial balance on 31 December 2010 Trial balance as at 31 December 2010 Debit $ Capital at 1 January 2010 Receivables 427,370 Cash in hand 14,110 Payables 354,040 Fixtures and fittings at cost 422.000 Discounts allowed 13.040 Discounts received 11.750 Inventory at 1 January 2010 184.600 Sales 4,916,200 Purchases 3,879,360 Motor vehicles at cost 457.300 Lighting and heating 61,840 Motor expenses 28,620 Rent 88.410 General expenses 74,130 Bank overdraft 198.610 Provision for depreciation Fixtures and fittings 22.000 Motor vehicles 152.920 Drawings 265.680 5.916.46 5.916,460 The following information as at 31 December is also available. a. $2,180 is owing for motor expenses. b. 46,800 has been prepaid for rent. c. Depreciation is to be provided for the year as follows. Motor vehicles: 20% on cost Fixtures and fittings: 10% reducing balance method d. Inventory at the close of business was valued at 199,260 Required Prepare Mr Brown's income statement for the year ended 31 December 2010 and his statement of financial position at that date