JAM World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer.As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for your review.

Revenue $7,600,010.

Administrative Expenses $2,300,000.

Distribution Costs $980,231.

Interest paid on loan $125,000.

Purchases $4,500,330.

Inventories at 1 January 2021 $1,018,900.

Trade receivables $630,340.

Provision for doubtful debts at Jan 2021 $19,634.

Bad debts $70,110 .

Non-current Investment $300,900

Additional notes:

i. Provide for administrative Expenses of $500,000 paid in advance at 31 December 2021.

ii. Provision for doubtful debts is to be maintained at 10% of receivables

iii. Inventories at 31 December 2021 were valued at $1,000,000

iv. Provide for corporation tax of $80,000 which is payable of October 1, 2022

v. Loan interest accrued $62,500

Required:

a. Prepare for presentation to the shareholders a published Income statement for the year ended 31 December 2021

b. Notes to the Income statement