Part II (30 marks) The following information has been extracted from the accounts of Star Hotel Ltd. Income Statement for the year ended 31 December Sales (on credit) Less: Cost of sales Gross profit Less: Expenses Interest expenses Other operating expenses Profit before tax Income tax Profit for the year 2021 ($'000) 950 390 560 40 485 525 35 (5) 30 Statements of Financial Position as at 31 December Assets Non-current assets (net) 2020 ($'000) 2021 ($'000) 545 550 Current assets Inventories Accounts receivable Cash and bank Total Assets 35 30 100 120 65 85 200 235 745 785 Liabilities Non-current liabilities Long-term loan 360 380 Current liabilities Accounts payable 100 150 Other accrued expenses 60 75 160 225 Total Liabilities 520 605 Shareholders' Equity Share capital Retained earnings 80 80 145 100 225 180 Total Liabilities and Shareholders' Equity 745 785 2