Mohammed SAOG is involved in the manufacture of baked goods. It provides you the following details, you are required to prepare a Statement of Financial Performance clearly showing: 1. Net sales 2. Cost of Goods sold, 3. Gross profit, 4. Net income before interest and Tax, 5. Net income after interest and tax (7 marks)

Particulars	Amount(OMR)
Profit on sale of building	1500
Factory Lighting	2000
Discount Received	400
Return outwards	1200
Rent from tenants	2900
Advertisement Expenses	1000
Carriage on Sales	560
Opening Stock	8200
Freight inwards	890
Stationery	500
Interest(Cr.)	3700
Bad debts	2520
Purchases	143,400
Sales	189,900
Tax	35%
Closing stock	10,200

After calculating the net income, consider the following information.

Mohammed SAOG has in issue 50,000 Equity shares having a par value of 0.270 baiza was issued at a premium of OMR 2.1.

It also has in issue 9% 30,000 Irredeemable Preference shares having a par value of 0.750 baiza was issued at a premium of OMR 1.6

A. Comment and show how the net income of the company will be affected :( 1.5 marks)

a. Change in the net income due to Irredeemable Preference shares

b. Calculate and answer whether it is possible to pay a dividend to equity share holders

B. How will you show the Preference share capital and Equity Share capital and any other items in the Statement of Financial Position (1.5 marks)