David Kweya started a business of selling children's clothes on 1 July 2016. He commenced the business with a capital of Sh. 14,000,000. He deposited this amount in a business bank account. During the year, David Kweya made the following payments through the bank account: Purchase of furniture and fittings Salaries Electricity Rent Payment to suppliers Drawing Insurance Sh. "000" 2,450 399 14 175 5,460 210 35 Additional information: 1. Gross profit is 20% of the sales. 2. Total purchases during the year amounted to Sh. 8,400,000. 3. Inventory as at 30 June 2017 was valued at Sh. 1,400,000. 4. Depreciation on furniture and fittings is provided at 10% per annum. 5. Accounts receivable as at 30 June 2017 amounted to Sh. 1,400,000. 6. Rent accrued as at 30 June 2017 amounted to Sh.70,000. 7. On 1 January 2017, David Kweya obtained a ten-year loan of Sh.5,600,000 at an interest rate of 12% per annum from the bank. The amount was credited into his business bank account. Required: a) Income statement for the year ended 30 June 2017. b) Statement of financial position as at 30 June 2017.