Question 3 (25 marks) The following financial information relates to Gawai L.td,a company incorporated and operates in Hong Kong: Statement of Profit or Loss for the year ended 31 December 2016 5000 60,700 Sales revenue Cost of sales Gross profits General and administrative expense Selling and distribution expense Other operating expenses Finance cost Profits before tax Income tax Profits for the year 30,500 (11.063) (1.600) (7,680) (1.005) 9,152 (252) 8,200 Statements of Financial Position as at 31 December 2015 $000 2016 $000 Assets Property, plant and equipment Less: Accumulated depreciation 117.605 107.836 41467 00617 76.13877.219 3,875 2,330 20,50018,000 Inventories Accounts receivables Cash at bank Total assets 25.00021,132 3,0502250 127018 122 476 71,00062,500 Share capital Retained profits Long term debentures Accounts payables Other payables 14.700 15 820 15,820 15,00024,000 18,72514,162 4,450 3,750 Page S of s ACT B332F (1702)