From the following TB of a limited company carpet retailer, Carpet City Ltd$,$

produce the Income Statement for the year$-$ending $31$ August $2023$ and the

Statement of Financial Position as at $31$ August $2023.$

Notes as at $31$ August $2023$

Closing inventory $100,000.$

The rate of interest on the loan is $10\%.$ Loan interest is paid quarterly in

arrears. Adjust accordingly.

Rent prepaid $10,000.$

Rent and rates, and depreciation on furniture and equipment to be shared

between distribution and admin expenses as follows: distribution $3/4,$ admin $\frac{1}{4}.$

Furniture and motor vehicles are depreciated over five years on a straight

line basis.

Adjust the provision for doubtful debts at $10\%$ of trade receivables.

Make a provision for income tax expense at $70,000.$

The directors are recommending a final dividend of $5p$ per share.