Kim Soo offers tutoring services to first year university students. Kim has established a sole proprietorship business named KSHelp. The following information relates to the business activities for the end of the financial year 30 June 2020:

Account: $

Accounts payable 800

Accounts receivable 1,500

Accumulated depreciation - computer equipment 4,950

Accumulated depreciation - Motor vehicle 8,250

Advertising expense 510

Capital at beginning 14,500

Cash at bank 8,445

Computer equipment 8,250

Depreciation expense - computer equipment 1,650

Depreciation expense - Motor vehicle 2,750

Drawings 2,520

Loan 7,500

Motor vehicle 16,750

Motor vehicle expense 330

Office supplies 1,500

Office supplies used 840

Telephone charges 255

Tutoring fees earned 9,750

Prepare the Statement of Profit or Loss at 30 June 2020.

Explain the differing purpose and role of the Statement of Profit or Loss compared to a Statement of Financial Position and how the information contained in each might be useful to Kim Soo.