Roy has been running a business for a few years, selling sports equipment online and to a few stores in East Sussex. At the financial year-end, the business had exceeded its overdraft limit of 6,000. The following balances were drawn from his books of accounts on 31 December 2021. Roy's Trial Balance as of 31/December/2021 Debit Credit 331,300 243,700 53,090 8,400 4,000 2,000 82,000 36,500 18,450 Sales Purchases Wages Delivery van expenses Insurance Other expenses Motor vehicles Motor vehicles accumulated depreciation, as at 1/Jan/2021 Equipment Equipment accumulated depreciation, as at 1/Jan/2021 Trade receivables Trade payables Bank overdraft Inventories Drawings Bank loan (10%) Interest paid Capital 6,130 10,685 24,590 6,030 28,300 21,000 25,000 2,500 44,575 474, 125 474,125 a. Inventory on 31 December 2021 is valued at 40,090. b. Motor vans are to be depreciated on a straight-line basis at the rate of 30% per annum. c. Depreciation of equipment on the reducing balance basis at the rate of 25% per annum. d. Insurance of 1,000 has been paid in advance. e. An irrecoverable debt (bad debt) of 300 was written off on 31 December 2021. f. Wages of 830 for the week ended 31 December 2021 have not yet been paid. Required: a) Prepare Roy's statement of profit or loss for the year ended 31 December 2021. Type your answer here. b) Prepare Roy's statement of financial position as of 31 December 2021. Type your answer here. c) Comment on the profitability of his business and suggest how he can improve his profits as well as reduce the bank overdraft. Type your answer here