Prepare the Income Statement

Andy Fleming has been preparing his business's financial statements for the year ended 31 December 2017 The following balances have been extracted from the ledger accounts at 31 December 2017 Bank loan Bank loan interest Cash at bank Carriage inwards Carriage outwards Commission received Drawings General expenses Inventory at 1 January 2017 Motor vehicles 18 400 645 391 1 056 637 845 17 885 12 470 11 730 35 600 16 500 62 450 3 620 1 074 650 149 600 7 587 6 229 cost sion for depreciation at 1 January 2017 Purchases Rent of premises Returns inwards Returns outwards Revenue Trade payable Trade receivables Additional information 1. 2. Inventory at 31 December 2017 was valued at cost 13 480 Bank loan interest at 6% per annum had not been paid for the last two months of the year ended 31 December 2017, During the year ending 31 December 2018 25% of the bank loan is due for repayment. Rent of premises is paid quarterly. Rent of 840 for the quarter ended 28 February 2018 was paid in advance in November 2017 3. 4. On 31 December 2017 Andy Fleming's bank informed him that a chequefor 790 received from a trade receivable in November 2017 had been dishonoured. No entries have been made in the books of account. The motor vehicles are expected to have a useful economic life of four years when it is estimated they will have a residual value of 2600 5