During the year ended 31 December 2016 the following transactions occurred: During the year company purchased inventories total 80,000. Cash purchases were 20,000, the rest were bought on credit. On 31 December 2016 inventories were 9,000. ii. During the financial year total cash sales were 100,000 (cost of the goods sold 31,000). The total credit sales were 80,000 (cost of the goods sold 50,000). During the year company received 60,000 in settlement of credit sales. iii. 30,000 was paid to suppliers of inventories. iv. 1,500 was paid in respect of rates on the land and building for the period 1 April 2016 to 31 March 2017. v. Electricity bills for the first three quarters of the year and 300 for the last quarter of the previous year was paid in cash 1,200. The bill for the last quarter is 300 and is still outstanding. vi. Loan interest was paid in full 1500. vii. Wages totaling 10,000 were paid in cash during the year. At the end of the year, business owed 1,000 of wages for the last month of the year. viii. The company uses the reducing balance method of depreciation for all its equipment and vehicles. Equipment is depreciated at a rate of 10% and vehicles at 20%. Freehold land and buildings are not subject to depreciation. ix. On the 31 December 2016 just before the accounts were closed, business repaid the full bank loan. X. The corporation tax for the current financial year is 17,500 and the first 50% of the tax bill was paid in cash during the year. Required: Using all the information detailed above, prepare and present: a) The Statement of Financial Performance (also known as the Profit and Loss Account or Income Statement) for the financial year ended 31 December 2016. (25 Marks) b) The Statement of Financial Position (also known as the Balance Sheet) as at 31 December 2016 (25 Marks) Greenwood Ltd Statement of Financial Position as at 31 December 2015 ASSETS Non-Current Assets Freehold Land and Buildings (cost) 130,000 Equipment (cost) 30,000 Vehicles (cost) 20,800 180,800 Current Assets Inventories 10,000 Receivables 10,000 Cash 36,000 Prepaid Expenses: Rates 1.500 57,500 Total Assets 238,300 EQUITY and LIABILITIES Equity Owner's Capital Retained Earnings 120,000 47,000 Non current Liabilities Long Term Borrowing 50,000 10,000 10,000 Current Liabilities Trade Payables Tax Payable Accrued Expenses: Electricity Wages Total Equity and Liabilities 300 1.000 21,300 238,300