Question 4 (30 marks) Libra Limited, an international logistics company, presented the following trial balance as at 31 December 2019: Dr S000 Cr 5000 3,720 4,520 12,030 8,400 850 1,440 3,320 230 2,080 56,860 880 Cash and bank balances Trade receivables Land and buildings Plant and machinery Motor vehicles Acc. depreciation - land and buildings Acc. depreciation - plant and machinery Acc. depreciation - motor vehicles Inventory as at 1 January 2019 Sales revenue Other income Purchases Administrative expenses Distribution costs Other expenses Finance costs 2018 final dividend paid in February 2019 2019 interim dividend paid Bank loan (repayable in 2025) 800,000 ordinary shares, fully paid up Retained profits as at 1 January 2019 Trade payables Profits tax underprovided 37,520 9,650 2,780 970 750 800 700 2,000 15,570 1,860 2,870 260 85,030 85,030 Additional information: 1 Profits tax expense for 2019 was to be $680,000. 2 Ending inventory at 31 December 2019 amounted to $2,620,000. 3 Depreciation expenses for 2019 were: Land and buildings $550,000 (Administrative expenses) Plant and machinery $930,000 (Administrative expenses) Motor vehicles $170,000 (Distribution costs) Required: a Prepare the income statement for the year ended 31 December 2019. (12 marks) b Prepare the statement of financial position as at 31 December 2019. (18 marks)