his section has ONLY one (1) question which is worth 60 marks. Do all parts! 2 1. Manifesto, a limited liability company, compiles its financial statements to 30 June annually. At 30 June 2020, the company's list of account balances was as follows: $000 $000 Sales revenue 14,800 Purchases 8,280 Inventory at 1 July 2019 1,390 Distribution costs 1,080 Administrative expenses 1,460 Land at valuation 10,500 Buildings: cost 8,000 Accumulated depreciation at 1 July 2019 2,130 Plant and equipment: cost 12,800 Accumulated depreciation at 1 July 2019 2,480 Trade accounts receivable and payable 4,120 2,240 Cash at bank 160 Ordinary shares of 50c each: as at 1 July 2019 10,000 Issued during year 4,000 Share premium account: as at 1 July 2019 2,000 Premium arising on shares issued during year 2,000 Revaluation reserve as at 1 July 2019 3,000 Accumulated profits 3,140 10% loan notes (redeemable 2029) issued 1 April 2019 with interest payable 31 March and so September each year 2,000 47,790 47,790 The following matters remain to be adjusted for in preparing the financial statements for the year ended 30 June 2020: a. Inventory at 30 June 2019 amounted to $1,560,000 at cost. A review of inventory items revealed the need for some adjustments for two inventory lines: (i) Items which had cost $80,000 and which would normally sell for $120,000 were found to have deteriorated. (ii) Remedial work costing $20,000 would be needed to enable the items to be sold for $90,000. (iii) Some items sent to customers on sale or return terms had been omitted from inventory and included as sales in June 2019. The cost of these items was $16,000 This is SECTION A Instructions: This section has ONLY one (1) question which is worth 60 marks. Do all parts! 3 and they were included in sales at $24,000. In July 2019, the items were returned in good condition by the customers. b. Depreciation is to be provided as follows: Buildings: 2% per year on cost. Plant and equipment: 20% per year on cost. 80% of the depreciation is to be charged in cost of sales, and 10% each in distribution costs and administrative expenses. c. The land is to be revalued to $12,000,000. No change was required to the value of the buildings. d. Accrued expenses and prepayments were: Accrued expenses Prepayments $000 $000 Distribution costs 190 120 Administrative expenses 70 60 e. No dividends were paid during the year and no dividend is proposed for the year. Required: Complying as far as possible with the provisions of IAS1 Presentation of Financial Statements and other relevant International Accounting Standards, prepare for publication: a) The company's Statement of Income & Other Comprehensive Income for the year ended 30 June 2020. (30 marks) b) The company's Statement of Changes in Equity for the year ended 30 June 2020. (20 marks) c) The company's Statement of Financial Position as at the year ended 30 June 2020. (25 marks).........to be honest i just want to know what to do with part A No. 3