Please solve it with showing the calculations for each step espicially in question $($a$).$

QI Ltd Ltd manufactures and sells tables and chairs. The Statement of Financial Position (balance sheet) for the company at 31 March 2023 is given below. Details of transactions during the year are also given. IguuLtcl Statement of Financial Position 31 March 2023 ASSETS Non-current assets Land and buildings (net book value) Plant and machinery (net book value) Current assets Inventories Trade receivables Cash Total Assets EQUITY AND LIABILITIES Equity Share capital Retained earnings Non-current liabilities loan Current liabilities Total Equity and Liabilities 1 2 3 4 5 7 6 L000 2,100 560 700 920 310 L000 2,660 1 930 1,500 890 2,390 1,000 1 200 Notes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 21,000 tables and 105,000 chairs were sold during the year, at prices of L85 and L47 respectively. The company has a gross profit margin of 40% on all units sold. crhis is the profit percentage of sales. Cost of Sales is 60% of sales.) Operating costs during the year, excluding depreciation, were L961 The net book value of land and buildings is to be reduced to zero evenly over 20 years from 1/4/2023. On 1/4/23 was spent on additional plant and machinery (P&M). The net book x.%due of all P&M is to be reduced to zero evenly over 5 years from 1/4/23. Interest of on the loan is chargeable in the Statement of Comprehensive Income. Tax of is chargeable in the Statement of Comprehensive Income Inventories at 31 / 3/24 were Trade receivables at 31 / 3/24 were cash at 31/3/24 was Ll 50,000. Current liabilities at 31 / 3/24 were L 720,000. Some of the loan was paid off during the year but the accountant can't remember how much. Dividends of L417,000 were paid to ordinary shareholders. (CONTINUED OVER PAGE) 2 Required: (a) It is now 31 March 2024 and you have been asked to prepare a Statement of Comprehensive Income for the year ended on this date, together with a Statement of Financial position 31 March 2023. You are not required to prepare a cash account, nor a statement of changes in equity. Show all workings. (b) Use data given about inventories, together with the trading account from (a) to calculate the purchases made during the 2024 financial year. (c) Explain the term 'accruals accounting' and discuss why the accruals principle is used when constructing financial statements. (d) A company's accountant has valued its year-end inventories at but the warehouse manager believes them to be worth What is the effect on the company's financial statements for the year of adopting the accountant's value, rather than that of the warehouse manager?