Phoenix has carried on business for a number of years as a retailer of a wide variety of consumer products and it operates from a number of stores. In recent years the entity has found it necessary to provide credit facilities to its customers in order to maintain growth in revenue. As a result of this decision the liability to its bankers has increased substantially. Extracts from the financial statements for the year are provided below. INCOME STATEMENTS FOR THE YEARS ENDED 30 JUNE Revenue Cost of sales Gross profit Other operating costs Profit before interest Interest from credit sales Interest payable Profit before taxation Income tax expense Profit for the year STATEMENTS OF FINANCIAL POSITION AT 30 JUNE Property