QUESTION 2 (21) Acacia Ltd manufactures and sells quality furniture. Their income statements and statements of financial position are given: Income Statements For The Years Ended 31 December 2014 And 2015ok Revenue Cost Of Sales Gross Profit Distribution Expenses Administrative Expenses Operating Profit Interest Payable Profit Before Taxation Taxation Profit For The Year 2014 2015 Rm Rm 207 153 (101) (76) 106 76 (22) (20) (20) (28) 64 29 (4) (4) 60 37 (16) (6) 44 19 Statements of Financial Position as at 31 December 2014 And 2015 ASSETS 2014 2015 Rm Rm Non-Current Assets Property, Plant And Equipment Land And Buildings 110 130 Plant And Machinery 62 56 172 186 Current Assets Inventories 22 25 Trade Receivables 26 25 Cash In Bank And In Hand 19 - 69 50 TOTAL ASSETS 241 236 EQUITY AND LIABILITIES Equity Called-up ordinary share capital 100 100 Retained earnings 56 57 156 157 Non-Current Liabilities Borrowings-loan notes (10%) 40 40 Current Liabilities Borrowings (all bank overdraft) Trade Payables 37 Taxation 8 213 34 45 39 TOTAL EQUITY AND LIABILITIES 241 236 Continue on next page