Moorfoot Co operates a chain of wholesale grocery outlets. Its first account balances at 30 June

20X8 was as follows:

$000 $000

Revenue 13,600

Purchases 8,100

Inventory 1 July 20X7 1,530

Distribution costs 1,460

Administrative expenses 1,590

Interest on loan notes 50

Dividends declared and paid:

Final for year ended 30 June 20X7 480

Interim for year ended 30 June 20X8 360

Land at cost 1,510

Buildings

Cost 8,300

Accumulated depreciation at 30 June 20X7 1,020

Warehouse and office equipment

Cost 1,800

Accumulated depreciation at 30 June 20X7 290

Motor vehicles

Cost 1,680

Accumulated depreciation at 30 June 20X7 620

Trade receivables 810

Allowance for receivables 18

Cash at bank 140

Trade payables 820

10% loan notes (issued 20W5 and to be redeemed 20Y0) 1,000

Called up share capital Ordinary shares of 25c each 1,200

Share premium account 2,470

Retained earnings 30 June 20X7 6,772

27,810 27,810

The following additional information is available:

(1) Inventory at 30 June 20X8 was valued at $1,660,000.

(2) Trade receivables balances totalling $6,000 are to be written off and the specific

allowance for receivables increased to $30,000. It is the entitys practice to include the

charge for Irrecoverable debts and the allowance for receivables in administrative

expenses in the statement of profit or loss

(3) Accruals and prepayments at the year-end were: Prepayments Accruals $000 $000 Distribution costs 60 120 Administrative expenses 70 190 Interest on loan notes 50 (4) In early July 20X8 Moorfoot Co received invoices for credit purchases totalling $18,000 for goods delivered before 30 June. These invoices have not been included in the accounts payable at 30 June 20X8. It was also found that credit sales invoices totalling $7,000 for goods delivered to customers before 30 June 20X8 had mistakenly been dated in July 20X8 and thus excluded from sales for the year and from accounts receivable at the year end. The goods received had been included in the year-end inventory figure given at (1) above, and the goods sold had been excluded from it. No adjustment to the inventory figure is therefore required. (5) Depreciation should be provided as follows: Land Nil Buildings 2 per cent per year on cost Warehouse and office equipment 15 per cent per year on cost Motor vehicles 25 per cent per year on cost All depreciation is to be divided equally between distribution costs and administrative expenses. Required: Prepare Moorfoot Cos statement of profit or loss for the year ended 30 June 20X8, and statement of financial position as at that date, complying as far as possible with the requirements of IAS 1 Presentation of Financial Statements. Ignore taxation. Notes to the financial statements are not required.