Provide step by step answers. Include all the statements in question.

The information provided below was obtained from the bookkeeping records of Barlo plc on 30 June 2017. (i) Prepare Barlo ple's financial statements in a form suitable for publication: statement of profit or loss statement of changes in equity statement of financial position (ii) Describe the steps by which the estimated tax charge would have been determined. [5] [Total 20] Barlo plc Trial Balance as at 30 June 2017 Administrative expenses 2,600 Cash at Bank 428 Directors' salaries 3,780 Dividends paid 280 Loan interest 123 Loans 1,000 Marketing costs 2,457 Opening inventory 1,700 Plant and equipment - accumulated depreciation 2,600 Plant and equipment - cost 19,600 Production expenses 4,800 Production materials 11,080 Property - accumulated depreciation 4,270 Property - cost 9,000 Retained earnings 3,418 Revenue 47,896 Sales salaries 2.463 Share capital 4,500 Share premium 1,200 Trade payables 509 Trade receivables 3,982 Wages paid to production staff 3,100 65,393 65,393Further information: (1) Inventory was counted at 30 June 2017 and was valued at $1,950,000. (2) Property is to be depreciated at 2% of cost and plant and equipment is to be depreciated at 25% on the reducing balance basis. (3) Corporation tax of $2,600,000 is to be provided for the year.A life insurance company issues a 20-year with-profit endowment assurance policy to Russell, aged 40. The sum assured of f20,000 plus declared reversionary bonuses is payable immediately on death, or on survival to the end of the term. (i) Calculate the quarterly premium payable by Russell throughout the term of the policy if the office assumes that future reversionary bonuses will be declared at the rate of 1.92308% of the sum assured, compounded and vesting at the end of each policy year on the following basis: Mortality: AM92 Select Interest: 6% pa Initial expenses: 114% of the first premium and 2.5% of the basic sum assured Renewal expenses: 4% of each quarterly premium, excluding the first [8] (ii) The life office values its with-profit business using the net premium method, assuming an interest rate of 4% pa and AM92 Ultimate mortality. Calculate the prospective reserve for Russell's contract described above just before the 13th quarterly premium is payable, given that the total reversionary bonus declared up to that time is $600. [5] [Total 13]A 10-year "double endowment" assurance policy issued to a group of lives aged 50, a sum assured of f10,000 is payable at the end of the year of death and $20,000 is paid if the life survives to reach the maturity date. Premiums are payable annually in advance. You are given the following information: Reserve at the start of the 8th year (per policy in force): (12,940 Number of policies in force at the start of the 8th year: 200 Number of deaths during the 8th year: 3 Annual net premium (per policy) $1,591 (i) Assuming that the reserving basis uses ELT15 (Males) mortality and 4% pa interest, calculate the profit or loss arising from mortality in the 8th year. [5] (ii) Comment on your results. [1] [Total 6]Jute is an actuarial consultancy.r that has three departments: Pensions, Insurance and Risk. The following gures have been prepared for the year ended 31 March 21116. Statements of Prot or Loss For the year ended 31 March 2|] 16 Pensions 1796 Fees 1 1,600 Salaries (7,760] Depreciation computers {667] Depreciation premises [3 6) Other expenses {1114) Interest 238 Prot 2,2115 Statements of nancial position As at 31 March 2616 Pensions 690 Non-eurent assets Dfce 1,8110 Computers 2,000 3,300 Current assets Unbilled hours 1,467 Trade receivables 6-42 Bank 256 2,359 Total assets 6,159 Equity Share capital EDI] Retained earnings 3,1161 3,1361 Non-eurent liabilities Mortgage on office 1,600 Current liabilities Accrued salaries 6-42 Dther creditors 56 698 Total of equityr + liabilities 6,159 Insurance 661} 9,1191] (5,460} (415?) {36) (IN) ass 2,7:55 Insurance .6669 1,8111] 1,4111] 3,291] 1,72 5 675 175 2,575 5,775 891] 2,863 3,663 1,601] 451.] 62 5 12 5,775 Risk 6176 3 ,6ll .: l ,440) {2611) {13) (52) 144 l ,746 Risk 060 sea son 1 ,5ll 430 150 65 695 2,195 4111] 843 1,243 8111] 121] 27 147 2,195 TOTAL 999 23,501] (14,541)} [I ,334) (an {2611] no 6,656 TOTAL f 4,506 4,606 3,506 3 ,672 l ,467 490 5 ,629 14,] 29 2,606 6,772 8,772 4,601] l,2]2 145 1,357 14,129 All staff time is billed to clients. Members of staff update a daily electronic timesheet. Their employment costs for that day are charged to the client or clients for whom they were working that day. Jute's directors invoice clients for the time charged to their accounts as and when they deem appropriate. The invoices are charged at cost plus a markup to cover other expenses and profit. Staff time is the only expense which is charged directly to contracts. All other expenses are treated as overheads. The company is based in a large office block which it owns. Pensions and Insurance each occupy 40% of the floor space and Risk occupies 20%. Share capital and long term loans are apportioned to the departments on the basis of these proportions. Jute's shares are all owned by the company's founders, all of whom are directors. The directors are concerned about the profit statement and statement of financial position for the following reasons: Risk's revenue and profit were much smaller than those of the other departments. Jute's directors are concerned that the Risk department could be undermining the profitability of the company as a whole. . Despite making substantial profits, Jute has very little cash available from which to pay dividends or even to meet short term commitments. The company has not been investing heavily in new fixed assets and has not made any loan repayments. (i) Compare the profitability of Risk with that of the other departments, explaining whether it is less profitable than the other two, and supporting your answers with relevant ratios. [10] (ii) Calculate: (a) the average length of time taken for staff costs to be charged to a client. (b) the average length of time taken by clients to settle their invoices. [2] (iii) Assess why Jute appears to have run into liquidity problems. [4] (iv) Suggest how Jute's liquidity problems might be overcome. [4] [Total 20]