Patience owns and manages a small manufacturing business. The following balances have been extracted from her books of account at 31 January 2020: Sh Sh Capital at 1 February 2019 171,120 Accounts payable 86,000 Bank and cash balance 45,400 Accounts receivable 92,000 Drawings 60,000 Administration expenses 150360 Advertising expenses 12000 Factory direct wages 60000 Factory indirect wages 24000 Factory power 36400 Furniture and fittings (all offices) 18400 Heat and light 16000 Plant and equipment 276800 Motor vehicle (used by salesmen) 144000 Plant hire 4000 Provision for bad debts 3200 Provision for depreciation 1 February 2019: Furniture and fittings 9200 Plant and equipment 138400 Motor vehicle 24000 Raw material purchases 264000 Rent rates 20000 Provision for unrealised profits (1 February 2019) 14,000 Sales 829640 Bank charges 4200 Inventories at cost, 1 February 2020: Raw materials 8000 Work in progress 16000 Finished goods 24000 _______ 1,275,560 1,275,560 The following additional information is provided: (i) Accruals at 31 January 2020 were: Factory power - Sh.1,600 Rent and rates - Sh. 4,000 There was also prepayment of Sh. 800 for salesmens motor vehicle insurance. (ii) Inventories at 31 January 2020, were valued at cost as follows: Sh. Raw materials 13,000 at cost Work in progress 30,000 at cost Finished goods 25,200 at transfer price (iii)Transfers are made from the manufacturing account at cost plus 20 %. (iv)Depreciation is to be charged on plant and equipment, motor vehicle, furniture and fittings at the rates of 20%, 25% and 10% per annum respectively on cost. (v)Expenditure on heat and light, and rent and rates is to be apportioned between the factory and office in the ratio of 4 to 1 and 3 to 2 respectively. (vi)The provision for bad debts is to be made equal to 6% of accounts receivable at 31 January 2020. Required to prepare: a) Manufacturing trading and income statement for the year ended 31 March 2020 (12 marks) b) Statement of financial position as at 31 March 2020 (8 marks)