Statement of financial position as at 31 March 2018 000's ASSETS Non-current assets Property, plant and equipment (at cost less depreciation) Land and buildings Fixtures and fittings 427 160 587 Current assets Inventories Prepaid expenses Trade receivables Cash at bank 306 0 275 100 681 Total assets 1268 EQUITY AND LIABILITIES Equity Share capital Profit for the period Retained earnings 300 11 223 534 Non-current liabilities Borrowings -9% loan notes 300 Current Liabilities Trade payables Taxation Other payables 354 4 76 434 Total equity and liabilities 1268 Income statement for year ended 31 March 2018 Revenue Cost of sales Gross profit Operating expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year 2681 -2272 409 -362 47 -32 15 -4 11 Since the unaudited financial statements for your company were prepared, the following information has become available: 1. An additional 40,000 of depreciation should have been charged on one of your buildings. 2. Your Quality Assurance department has found that some of your inventory has defects. You will need to scrap (throw away) 2,000 worth of inventory and write-off the full amount. 3. You are informed that a customer has gone bankrupt and will not be paying the 3,000 they owe for the products you sold them on credit. 4. You're very successful, but somewhat absent minded, sales associate informed you that she sold 120,000 worth of merchandise on 31 march 2012. The customer has 3 months to pay, but the sale needs to be included in the financial statements. Cost of sales is not affected. 5. Wages for the last week of the year, amounting to 15,000, have not been included in the financial statements. 6. An invoice for water used in your production process from the last month has not yet arrived, but you estimate that you have used 16,000 worth. 7. A new machine was purchased on credit for 25,000 and delivered on 31 March 2012 but has not been included in the financial statements (ignore depreciation). 8. An allowance for doubtful debts should have been made equal to 10,000. For each of the points 1. to 8. from above, do the following: 1. Describe the impact it will have on the financial statement(s) 2. Show the impact it will have by revising the financial statement(s)