Question 2 (3 marks) Maria acquired Sunshine Delivery Services in 2015 providing a courier service for non-refrigerated goods within the City of Melbourne. Due to Covid the business has expanded rapidly and needs to obtain finance for an additional delivery van to expand the business, Maria's accountant is ill and cannot assist for another month. As Maria has no experience in accounting she watched "how to prepare financial statements" YouTube videos and then prepared the financial statements below: shine Delivery Services Pty Ltd Income Statement As at the 30 June 2020 Sunshine Delivery Services Pty Ltd Statement of Financial Position For the year ending 30 June 2020 Revenues Service revenue Revenue received in advance 264,000 21,500 285,500 Assets Current Assets Add profit Accounts payable Delivery supplies Total current assets 3,000 45,000 18.000 65.000 Expenses Accumulated depreciation-motor vehicle Fuel expense Insurance expense Interest expense Salaries payable Total expenses Profit 25,000 77,500 23,500 15,000 13,500 154,500 131,000 Non-current assets Delivery Vehicles Deprecation expense-motor vehide Total non-current assets Total assets 180,000 20,000 160 000 160,000 226 000 Uabilities Current liabilities Accounts receivable Interest payable Salaries expense Total current liabilities Sunshine Delivery Services Pty Ltd Statement of Changes in Equity As at the 30 June 2020 58,000 7,500 125.000 190 500 Owners Investment 50,000 Non-current liabilities Long-term bank loan Total non-current labilities Total liabilities Net assets 145,000 145.000 335 500 - 109500 Retained earnings opening balance Cash Retained earings dosing balance 132,500 187,000 319,500 Equity Owners' Investment Retained earnings Opening Balance Total Equity 59000 112,50 12.100 Closing Equity 369,500 After learning that you are currently studying Principles of Accounting and Finance at La Trobe University, Maria has asked you for advice in the form of a brief written report. Your report should: a) Describe the purpose of each of the financial statements above (100 words). (0.5 mark) b) List any errors Maria has made in these financial statements and then briefly explain to Maria the correct treatment (200 words). (2.5 marks)