Prepare a Statement of Comprehensive Income for the year ended 31 December 2011 and a Statement of Financial Position as at that date in a form suitable for publication, so far as the information given allows.

The following trial balance was taken from the books of Rainbow plc as at 31 December 2011: m Retained profit at 1 January 2011 Sales Purchases Inventories at 1 January 2011 Rent and rates Salaries and wages Other expenses Freehold land at cost Plant and machinery at cost Motor vehicles at cost Accumulated depreciation: Plant and machinery Motor vehicles Trade receivables Other receivables Cash Trade payables Other payables 10% Debentures Debenture interest paid Ordinary share capital of 1 each Share premium Interim dividends paid m 30 1,200 500 400 90 80 50 900 350 90 140 50 120 80 150 50 30 500 25 700 140 5 ------2,840 ------- ------2,840 ------- The following additional information became available to you: 1. Inventories as at 31 December 2011 are valued at 300m. 2. Annual rent and rates is 120m. 3. Salaries and wages include 15m advance payments. 4. The annual depreciation on plant and machinery, and motor vehicles has not been charged. The company depreciates plant and machinery at 20% using the straight-line method and motor vehicles at 25% using the reducing-balance method. 5. A trade debtor owing 20m to the company has been declared bankrupt. 6. A provision of doubtful debts has to be made at 15% of the remaining trade receivables. 7. The remaining debenture interest has not been paid yet. 8. The freehold land was re-valued at 1,050m. The directors decided to reflect this in the accounts. 9. Taxation for the year is estimated to be 60m and has not been paid yet. 10. No final dividends have been declared. Required: Prepare a Statement of Comprehensive Income for the year ended 31 December 2011 and a Statement of Financial Position as at that date in a form suitable for publication, so far as the information given allows