From the following selected balances of Royal Oak plc as at 31 March 2021 draw up an income statement for the company $'000 Retained profits as at 31 March 2020 408 Inventory 1 April 2020 336 Purchases 5848 Revenue 9824 Return inwards 432 Return outwards 148 Carriage inwards 56 Wages and salaries (see Note (b)) 544 Rent and business rates (see Note (c)) 60 General distribution expenses 112 General administrative expenses 96 Discounts allowed 144 Bad debts 20 Loan note interest 48 Motor expenses (see Note (d)) 54 Interest received on bank deposit 24 Income from associates and joint ventures 12 Motor vehicles at cost: Administrative 216 Distribution 368 Equipment at cost: Administrative 60 Distribution 40 Royalties receivable 20 Dividend paid 420 Notes

(a) Inventory at 31 March 2021 $408,000

(b) Wages and salaries are to be apportioned: distribution costs , administrative expenses .

c) Rent and business rates are to be apportioned: distribution costs 60% , administrative expenses 40%.

(d) Apportion motor expenses in the proportion 2:3 between distribution costs and administrative expenses

(e) Depreciate motor vehicle 25% and equipment 10% on the cost

(f) Accrue auditors remuneration of $44,000

(g) Accrue corporation tax for the year on ordinary activity profits $1,456000

(h) A sum of $60,000 is to be transferred to general reserve