Denise acquired Fresh Foods Delivery Services in 2018 providing a delivery service for fresh fruit and vegetables within the City of Melbourne. Due to Covid the business has expanded rapidly and needs to obtain finance for an additional delivery van to expand the business. Denises accountant is ill and cannot assist for another month. As Denise has no experience in accounting she watched how to prepare financial statements and then prepared the financial statements below: . (2 marks)

Fresh Foods Delivery Services Pty Ltd
Income Statement
As at the 30 June 2021
Revenues
Service revenue	353,000
Revenue received in advance	28,000
Expenses
Accumulated depreciation-motor vehicle	33,500
Delivery supplies	24,000
Insurance expense	31,500
Interest payable	10,000
Salaries expense	167,000
Total expenses	349,000
Loss	4,000

Fresh Foods Delivery Services Pty Ltd
Statement of Changes in Equity
For the year ended 30 June 2021
Owners' Investment	67,000
Retained earnings opening balance	176,500
Retained earnings closing balance	180,500
Closing Equity	247,500

Fresh Foods Delivery Services Pty Ltd
Statement of Financial Position
For the year ended 30 June 2021
Assets
Current Assets
Cash	250,000
Accounts payable	60,000
Total current assets	351,000
Non-current assets
Delivery Vehicles	240,000
Depreciation expense-motor vehicle	- 26,500	206,500
Total non-current assets	206,500
Total assets	557,500
Liabilities
Current liabilities
Accounts receivable	77,000
Interest expense	20,000
Fuel expense	104,000
Total current liabilities	116,000
Non-current liabilities
Long-term bank loan	194,000
Salaries payable	18,000
Total non-current labilities	194,000
Total liabilities	310,000
Net assets	247,500
Equity
Owners' Investment	67,000
Retained earnings	180,500
Add profit	4,000
Total Equity	247

After learning that you are currently studying Principles of Accounting and Finance at La Trobe University, Denise has asked you for advice in the form of a brief written report. Your report should: a) Describe the purpose of each of the financial statements above. Ensure you discuss how the statements link to each other (100 words). b) List any errors Denise has made in these financial statements and then briefly explain to Denise the correct treatment (ignore addition errors) (200 words).