Linx Ltd started business on 1 January 2017. Linx issued for cash 200,000 ordinary shares of $1 for $1.2 and $100,000 of debentures at an interest rate of 12%. Debentures are paid in 2024. On 1 January 2017 Linx Ltd bought buildings for $120,000 and inventory for $80,000. On 1 March 2017 Linx Ltd bought equipment for $100,000. All these purchases were made in cash. The following transactions occurred evenly throughout the year: Sales $500,000 Wages $20,000 Purchases $350,000 Sundry expenses $100,000 All of these were cash transactions except for one sale for $50,000 which took place on 30 June 2017; the trade receivable paid in full on 30 September 2017. The equipment has a useful economic life of 10 years with nil residual value, and it is depreciated on a straight-line basis. The building is depreciated on a straight-line basis at 5% per annum. At 31 December 2017 inventories at cost were $150,000; they may be assumed to have been bought on average three months before the end of the year. Interest on debenture for the year was fully paid on 31 December 2017. During the year the RPI moved as follows: 1 January 2017 1 March 2017 30 June (=average for year) 110 30 September 2017 118 31 December 2017 125 The requirement is to prepare an income statement for the year ended 31 December 2017, and a statement of financial position at that date, both stabilised in Sof 31 December 2017