: H EXAMPLE 4: PRACTICE QUESTION The following information relates to New, a manufacturing company. $000 $000 430 10 75 15 14 60 14 12 7 10 37 60 Revenue Inventory at 1 October 2010 Purchases Advertising Administrative salaries Manufacturing wages Interest paid Dividends received Audit fee Bad debts Taxation Dividends paid Premises (cost) Plant (cost) Premises (depreciation) Plant (depreciation) Investments (long-term) Trade receivables Bank Trade Payables Deferred taxation Loan notes Share capital Retained earnings at 1 October 2010 450 280 40 160 100 23 139 7 62 140 100 343 1,294 1,294 (a) Inventory was worth $13,000 on 30 September 2011. (b) Premises consist of land costing $250,000 and buildings costing $200,000. buildings have an expected useful life of 50 years. The Plant includes an item purchased during the year at a cost of $70,000. This was the only transaction involving non-current assets during the year. Depreciation of plant is to be charged at 10 per cent per annum on a straight-line basis. (d) The balance on the income tax account comprises the under provision for income tax brought forward from the year ended 30 September 2010 (e) The provision for deferred tax is to be reduced by $17,000. The directors have estimated that income tax of $57,000 will be paid on the profits of the year. Required: Prepare an Income Statement for new for the year ended 30 September 2011 a Statement of Changes In Equity and a Statement of Financial Position at that date. These should be in a form suitable for presentation to the shareholders and include the note for property plant and equipment