Question 1 Nikita has prepared the following statement of financial position at the end of its first year of trading Statement of financial position as at 31st December 2015 ASSETS Non-current assets lant and equipment 62.370 Equipment at cost Accumulated depreciation Current assets Inventories Trade receivables Prepaid expenses - rent Cash 81,400 36,700 5,000 2,820 Total assets 172,700 CAPITAL AND LIABILITIES Owners Capital Add: profit for year 150,000 1,330 Current liabilities Trade pavables Total equity and liabilities uring 2016 the following transactions 2. Premises continued to be rented at an annual rental of 25,000. During the year, 3. Further plant and machinery was purchased on 1st January 2016 for 32,000 4.Wages of 55,300 and office expenses of 19,250 were paid The owners withdrew 22,000 cash from the business rent of 20,000 was paid to the owner of the premises This is expected to be used in the business for 4 years and then sold for 4,000 Electricity costs paid in the year totalled 5,280 and a bill of 750 was unpaid Closing inventories were valued at 85,000 Sales revenue on credit totalled 282,100, cash sales totalled 81,300 Purchases on credit totalled 189,100, cash purchases totalled 13,500 Receipts from trade receivables totalled 249,700 Payments to trade payables totalled 143,700 5. 7 10. The business uses the straight line method of depreciating non-current assets Required: Prepare a Statement of Profit and Loss (Income Statement) and a Cash Flow Statement for Nikita Marketing Agency for the year ended 31st December 2016 and a Statement of Financial Position as at that date