Income Statement for the year ended 31 December 2009 $'000 Sales Opening stock Purchases Closing stock $'000 1430 200 1000 1200 (240) Cost of Sales 960 Gross Profit Less Overheads: 470 Selling expenses 150 Administration expenses 140 (290) Operating profit 180 Less Debenture interest (10) Net Profit before taxation 170 Less Company profits tax (50) Profit after taxation 120 Less: preference dividend paid 25 Ordinary dividend proposed 75 (100) Retained profits for the year 20 Retained profits at the start of the year 180 Retained profits at the end of the year 200