Question 3: 35 Marks You are the Finance manager of Trott Ltd, a business that buys and sells cricket equipment. The trial balance at 31 December 2017 was as follows: 29735 Equity share capital ($1) N$ N$ 5,000 -5,835 66,980 5,400 3,930 38,760 3,130 3,790 200 250 200 9,290 2,360 "L 3,125 5,000 Retained earnings at 1 January 2017 Revenue Staff costs. Inventory at 1 January 2017 Purchases Distribution costs. Administrative expenses. Loan interest Investment income. Tax Receivables and payables Bank Motor vehicles-cost 6 Page Buildings cost 12,000 Motor vehicles accumulated depreciation 1 January 2017 1,000 Buildings accumulated depreciation 1 January 2017 2,400 Debentures (2020) 1,000 84,825 84,825 Additional information: 1. Trott has not made any additions or disposals of tangible non-current assets in the year. Its depreciation policy is as follows: Motor vehicles -20% reducing balance Buildings - 25 years straight line. The depreciation expense for the year is charged to cost of sales. 2. Inventory at the end of the year was valued as follows: Cost ($) 2,500 Bats NRV ($) 4,000 Gloves 650 500 Pads 1,000 2,000 Total 4,150 6,500 3. Staff costs are to be apportioned equally across cost of sales, distribution costs and administrative expense. 4. The balance of tax on the tax account represents the over/under provision for the prior year. An estimate of $1,500 has been made for the tax payable at the year-end. Prepare in a statement of profit or loss for the year-ended 31 December 2017 and a statement of financial position at that date. nom