Olive Ltd started trading on 1 January 2020. The trial balance at 31 December 2020 is as follows: 000 000 500 100 40 550 1 Ordinary shares Share premium Bank Trade payables Trade receivables Furniture at cost General expenses Insurance Purchases Sales Telephone expenses 540 800 1,400 200 2,100 4,000 150 5,190 5,190 The following information was obtained after the trial balance had been prepared: (i) Inventory at 31 December 2020 is valued at 310,000 cost. However poor sales demand means that this inventory will have to be sold for 300,000. (ii) Furniture is to be depreciated at a rate of 15% straight line. At 31 December 2020, Olive Ltd owed 5,000 for telephone expenses, and insurance had been prepaid by 2,000. (iv) Bad debts of 20,000 are to be written off. Question 2 Prepare Olive Ltd's Income Statement for the year ending 31 December 2020. (10 marks) Question 3 Prepare Olive Ltd's Statement of Financial Position as at 31 December 2020. (10 marks)