FINANCIAL ACCOUNTING (PDBA 237) TRIAL QUESTIONS ON FINANCIAL STATEMENT OF COMPANIES QUESTION ONE The following is an extract from the trial balance of CF at 31 March 2006: GH'000 GH'000 DR CR Administration expenses 260 Cost of sales 480 Interest paid 190 Interest bearing borrowings 2.200 Inventory at 31 March 2006 220 Property, plant and equipment at cost 1,500 Property, plant and equipment, depreciation to 31 March 2005 340 Distribution costs 200 Revenue 2,000 Notes: ) Included in the closing inventory at the reporting date was inventory at a cost of GH35,000, whose net realisable value was ascertained to be GH19,000. (ii) Depreciation is provided for on property, plant and equipment at 20% per year using the reducing balance method. Depreciation is regarded as cost of sales. (iii)A member of the public was seriously injured while using one of CE's products on 4 October 2005. Professional legal advice is that CE will probably have to pay GH500,000 compensation Required: Prepare CE's income statement for the year ended 31 March 2006 down to the line "profit before tax