Mayday is a trading company with financial year ending every 31 December. The company is preparing their financial statements for the year ending 31 December 2018 and the following is Maydays Trial Balance as at that date.

Mayday Trial Balance as at 31 December 2018 ('000)

Property, plant and equipment 65,520 (DEBIT)

Accumulated depreciation 7,520 (CREDIT)

Intangible asset 3,780 (DEBIT)

Inventories 1 January 2018 81,970 (DEBIT)

Other Short-term Investments 2,760 (DEBIT)

Trade Receivables 66,320 (DEBIT)

Cash and cash equivalents 34,650 (DEBIT)

Share capital 40,050 (CREDIT)

Retained earnings 1 January 2018 82,332 (CREDIT)

Long-term loans 33,090 (CREDIT)

Short-term borrowings 46,090 (CREDIT)

Trade payables 51,310 (CREDIT)

Revenue 331,080 (CREDIT)

Allowance for doubtful debt 50 (CREDIT)

Purchase 229,472 (DEBIT)

Administrative expenses 34,360 (DEBIT)

Distribution expenses 64,350 (DEBIT)

Finance cost 3,630 (DEBIT)

Taxation expense 1,540 (DEBIT)

Rental income 3,170 (DEBIT)

TOTAL DEBIT: 591,522

TOTAL CREDIT: 591,522

Additional information:

a. Depreciation for the financial year ending 31 December 2018 for property, plant and equipment have been charged and included in the accumulated depreciation account in the trial balance.

b. The company received a grant worth RM6,000 on 15 December 2018. It was an incentive by the government for retraining a group of its employees. The three-month training started in December 2018 has a cost of RM10,000 a month. None of the transactions related to the above has been recorded.

c. Included in the long-term loans is a loan worth RM4,000,000 at 5% annual interest, granted by a local bank on 1 August 2018, for five-year period. Installment for the month of December 2018 has not been paid yet and the related interest for the installment was RM15,200. None of the transactions related to the above has been recorded.

d. The intangible asset was capitalized from the cost of research and development made by the company between 2016 and 2017, recognized in December 2017. The asset that resulted from the research and development process will last for 60 years and it is the companys policy to amortize the intangible assets over 10 years. No record has been made in relation to the amortization for the financial year 2018.

e. The company is in the middle of a court case with Kinoyu Berhad. The company refused to accept a batch of goods delivered to it in January 2018 due to its misspecification. Consequently, Kinoyu Berhad is suing the company in August 2018 and asking for a compensation of RM3,000,000 for breaking their trade contract. At the end of December 2018, the lawyers that represent Mayday gives a 50-50 percent chance to win.

f. Stocktake as at 31 December 2018 revealed inventory cost amount of RM80,600,000. However, one batch of the inventory was damaged and need to be repackaged. The cost of repackaging was RM5,000 to enable it to be sold at RM110,000. The cost for the batch was RM100,000.

Question:

Prepare Statement of Profit or Loss and Other Comprehensive Income for financial year ended 31 December 2018 for Mayday.