Prepare the Income Statement for the year ended 31st October 2022, with expenses classified by function.

The following trial balance was extracted from the Monica Ltd on 31st October 2022. Additional Info The following information was provided at the end of the year: 1. Inventory at 31st October 2022 was valued at f70m. 2. Cost allocation basis for the following expenses: 3. Rates (included within rent and rates) for the year ended 30th April 2023 , costing 8m, where paid before the year end. 4. The following expenses were used during the period were unpaid at the yearend: a. Computer maintenance - 8m b. Utilities 5m 5. The company depreciates property, plant and equipment at 20% on a reducing balance basis. 6. The allowance for doubtful debts is to be maintained at 10% of outstanding trade receivables and has not yet been recorded. 7. On 1st May 2022 the directors made a rights issue of 2 share for every 4 held, issued at a premium of 60p per share. The issue was fully subscribed and paid up but no entries have been made to record this. 8. The directors of the company propose to: a. Account for corporation tax of 6m for the year. b. Pay a final ordinary dividend of 2p per share. c. Account for the remaining debenture interest. d. Transfer 5m into a general reserve