Sunny Siong has established a sole proprietorship business named SS Tech Services. Sunny offers tech and digital services to small and medium sized businesses. The following information relates to the business activities and account balances for the financial year ended 31 December 2020:

Account:	$
Accounts payable	675
Accounts receivable	6,660
Accumulated depreciation computer hardware	5,950
Accumulated depreciation motor vehicle	5,450
Marketing agency expenses	510
Capital Sunny Siong	35,500
Bank	2,000
Computer hardware	9,250
Depreciation expense computer hardware	1,650
Depreciation expense motor vehicle	2,750
Drawings	9,520
Bank loan	7,000
Motor vehicle	16,750
Motor vehicle expense	330
Office supplies	1,455
Office supplies used	840
Mobile phone charges	255
Tech and digital services fees earned	9,750

1. Prepare a Statement of Profit or Loss for the year ended 31 December 2020 (5 marks)

Explain to Sunny how his business has performed. Also explain to Sunny if he should prepare a Statement of Financial Position and why. Provide examples.