Kiwi Limited operates a small chain of retail shops that sells high-quality teas and coffees.

Approximately half of sales are on credit. Abbreviated and unaudited financial statements are as follows:

Kiwi Limited

Income statement for the year ended 31 December 2019

Revenue

$12,080,000

Cost of sales

(6,282,000)

Gross profit

5,798,000

Labor cost

2,658,000

Depreciation

(625,000)

Other operating costs

(1,003,000)

Operating profit

1,512,000

Interest payable

(66,000)

Profit before tax

1,446,000

Taxation

(434,000)

Profit for the year

1,012,000

Kiwi Limited

Statement of financial position as at 31 December 2019

ASSETS

Non-current assets

$2,728,000

Current assets

Inventories

1,583,000

Accounts receivables

996,000

Cash

26,000

2,605,000

Total assets

5,333,000

EQUITY AND LIABILITIES

Equity

Ordinary shares

750,000

Share premium

250,000

Retained earnings

1,468,000

2,468,000

Non-current liabilities

Borrowings - secured loan notes (due in 2024)

300,000

Current liabilities

Accounts payables

1,118,000

Other payables

417,000

Tax

434,000

Borrowings - overdraft

596,000

2,565,000

Total equity and liabilities

5,333,000

Since the unaudited financial statements for Ahmad Limited were prepared, the following information has become available:

1.An additional $74,000 of depreciation should have been charged on fixtures and fittings.

2.Invoices for credit sales on 31 December 2019 amounting to $34,000 have not been included; cost of sales is not affected.

3.Trade receivables totalling $21,000 are recognised as having gone bad, but they have not yet been written off.

4.Inventories which had been purchased for $2,000 have been damaged and are unsaleable. This is not reflected in the financial statements.

5.Fixtures and fittings to the value of $16,000 were delivered just before 31 December 2019, but these assets were not included in the financial statements and the purchase invoice had not been processed.

6.Wages for Saturday-only staff, amounting to $1,000, have not been paid for the final Saturday of the year. This is not reflected in the financial statements.

7.Tax is payable at 30 per cent of profit before taxation. Assume that it is payable shortly after the year-end.

Required

Prepare revised financial statements for Kiwi Limited for the year ended 31 December 2019, incorporating the above-mentioned information.