Q3. The following information has been extracted from the business accounts of Mathew Lloyd for his first year of trading which ended on 31^st December 2008

Purchases 94,350

Sales 125,890

Stock at 31 Dec 2008 5,950

Rates 4,850

Heating and lighting 2,120

Wages and salaries 10,350

Office equipment 8,500

Vehicles 10,750

Debtors 3,950

Bank balance 4,225

Cash 95

Creditors 1,750

Value added tax 450

Capital 20,000

Drawings 8,900

Required: prepare income statement and statement of financial position for the year ended 31^st December 2008.