Question 8: Financial statements (10 marks) The Trial Balance for North Cleaners LTD is provided below for the month of February 2020. North Cleaners LTD Trial Balance 29 February 2020 Cr Dr. 2,300 4,500 2,800 800 16,000 Cash Accounts Receivable Prepaid Rent Supplies Vehicle Accumulated Depreciation Accounts Payable Interest Payable Salaries Payable Revenue Received in Advance Bank Loan Share capital Retained earnings Dividends paid Service Revenue Salaries Expense Electricity Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Totals 600 2,000 200 300 4,300 4,000 8,500 3,900 1,200 9000 1,500 500 1,900 500 300 500 $32.800 $32.800 Required a) Prepare the Profit or Loss Statement (2 marks) b) Prepare a Statement of Changes in equity (2 marks) c) Prepare a classified Statement of Financial Position (also known as a Balance Sheet) (3 marks) d) Discuss the financial position of the business based on the information provided and through the use of liquidity, solvency and profitability ratios (calculate and discuss a minimum of three ratios)