Question 4: Statement of profit or loss and statement of financial position At 31 December 2020, Big Sky Roofing Ltd's trial balance shows the following account balances: m Prepayments received Cost of goods sold Long term bonds 80 740 460 Interest 30 Depreciation 200 Trade Receivables 120 Administrative salaries and wages 430 Inventory 380 Capital & reserves 590 Taxation Trade payables Insurance Brands and patents Cash Sales revenue 65 350 50 120 60 1,600 800 Equipment (net of accumulated depreciation) Required: A) B) Prepare a statement of financial position for the company as of the above date (classifying assets and liabilities as current or non-current). Start by calculating missing balance(s) and account(s) where applicable. (12 marks) Prepare a statement of profit or loss for the company for the year, showing gross profit, and operating profit where applicable. (12 marks) Consider and discuss whether a machine is a current or a non-current asset. Start your discussion by differentiating between current and non- current assets and then illustrate with one example each when a machine would be a current vs. a non-current asset. (6 marks)