McKie Ltd has presented you with the following balances for the year ended September 30, 2023:

\begin{tabular}{|c|c|c|} \hline Creditors & & 22,500 \\ \hline Sales Revenue & & 1,143,700 \\ \hline Land at cost & 550,000 & \\ \hline Building at cost & 570,000 & \\ \hline Furniture and fittings at cost & 85,000 & \\ \hline Bank & & 14,000 \\ \hline \multicolumn{3}{|l|}{ Provision for Depreciation } \\ \hline Buildings & & 120,000 \\ \hline Furniture and fittings & & 15,000 \\ \hline Discounts & 5,700 & 5,800 \\ \hline Retained Earnings at 1 Oct 2022 & 14,800 & \\ \hline Provision for bad debts & & 2,200 \\ \hline Goodwill & 400,000 & \\ \hline Cash & 16,400 & \\ \hline Inventory at 1 Oct 2022 & 48,000 & \\ \hline Rent Received(from Breezy Ltd) & & 27,000 \\ \hline Rent & 7,900 & \\ \hline Wages and Salaries & 122,000 & \\ \hline Insurance & 16,300 & \\ \hline Carriage Inwards & 2,300 & \\ \hline Returns & 8,500 & 12,000 \\ \hline Commission received & & 5,200 \\ \hline 8% Mortgage & & 100,000 \\ \hline Other Operating Expenses & 2,500 & \\ \hline Debtors & 45,000 & \\ \hline Purchases & 340,000 & \\ \hline Debenture Interest & 1,200 & \\ \hline Mortgage Interest & 4,600 & \\ \hline Bad debt & 4,700 & \\ \hline 7% Debentures & & 150,000 \\ \hline 4\% Preference Shares@\$0.5 & & 130,000 \\ \hline Ordinary Shares @ \$0.75 & & 375,000 \\ \hline General Reserves & & 127,000 \\ \hline Interim ordinary dividends paid & 4,500 & \\ \hline & 2,249,400 & 2,249,400 \\ \hline \end{tabular} The following additional information is available: 1. At September 30,2023 closing inventory was $32,000 2. The Accountant has determined that the estimate for the provision for bad debts at September 30,2023 is 10% of debtors. 3. At the end of the period it was discovered that one employee was owed $2,000 in salaries while another was overpaid by $4,000. Additionally insurance prepaid was $300 4. The following appropriation of the expenses must be made 5. On June 1,2023 the company rented some of its office space to Breezy Ltd. At that date Breezy Ltd paid rent covering the next nine months. 6. 7. Goodwill impairment was estimated to be 20%. 8. Corporation tax is estimated to be $42,000 9. The directors proposed on September 20,2023 to pay the final preference dividends. At a board of directors meeting on October 19, 2023 the directors evaluated the performance of the business over the past financial year and proposed to pay a further 6% ordinary dividend. Required: (a) Prepare the following for McKie Ltd for the financial year ending September 30, 2023: i. Statement of Profit or Loss ii. Statement of changes in equity iii. Statement of Financial Position. (20 marks) (8 marks) (12 marks) (b) Calculate the following ratios for McKie Ltd: i. Current ratio ii. Gearing ratio iii. Debt to Equity ratio iv. Return on capital employed v. Return on shareholders' equity (5 marks) (c) Write a report to management on the Liquidity, Solvency, and Profitability of McKie Ltd relative to the industry's performance below: (15 marks) (d) "Internally generated Goodwill can be recognized in the financial statements under certain conditions. "Please discuss the preceding statement making reference to any relevant accounting standard. (10 marks)