Sports goods PTY Limited formed a partnership with Rony and John to operate a wholesale business, selling electronics called buy right. The partnership agreement provides that the partnership is as follows sports goods PTY Limited 60%, Rony 20% and John 20%. The partnerships financial accountant, provided you with the following profit and loss statement. Income Sales $1,100,000 Government $75,000 ( note 1) Total income $1,175,000 Cost of goods sold Opening stock $80,000 Purchases $800,000 Closing stock $100,000 Total cost of goods sold $780,000 Gross profit $395,000 Expenses Employees wages $50,000 Interest on partnership loan $60,000 ( note 2) Partners salary for Michael and John $100,000 Rent $75,000 Electricity and water $45,000 Movement in provisions $55,000 ( note 3) Total expenses, $385,000 Net profit $10,000 Notes 1. The partnership received an apprenticeship rebate from the government to assist with the cost of apprentices that the partnership currently employees. 2. Sports goods PTY limited lent the partnership $1 million so the partnership would not have to borrow from the bank to finance the purchase of stock. The $60,000 interest relates to this loan. 3. The accountant has taken up the following movements in the provisions accounts. Doubtful debts $35,000 , long service