Tay Stebites: Trial balance at 30 September 2017 Dr Cr E E Capital at 1 October 2016 84,400 Sales revenue 425,000 Purchases 227,100 Inventory at 1 October 2016 14,800 Insurance 1,600 Telephone 2,350 Drawings 22,500 Provision for doubtful debts at 1 October 2016 3,000 General expenses 67,300 Motor vehicles - cost 168,000 Motor vehicles - depreciation at 1 October 2016 53,000 Trade receivables and payables 81,000 77,350 Loan 20,000 Loan repayments 9,600 Cash/Bank 68,500 662,750 662,750 You are given the following additional information for which no adjustments have yet been made to the trial balance above: Closing inventory at 30 September 2017 is f16,200. Depreciation is to be charged on a reducing balance basis of 20% per year with no residual value. On 30 September 2017, Tay brought her family car, valued at $8,000 into the business. No depreciation is to be charged on this during the year. No adjustment has been made for receivables found to be irrecoverable during the year. of E2,200. In addition, a collective doubtful debt provision of 5% is to be made at 30 September 2017 (no individual provision is required). A new insurance policy for which Tay paid f1,600 in advance when it started on 1 January 2017. The policy will cover the year to 31 December 2017. No telephone bill for September 2017 has been received yet. The bill is expected to be f250. The loan is due for repayment in March 2020. The figure in the trial balance for loan repayments includes $900 interest. The adjustments above do not require any adjustments to the bank/cash figure. REQUIRED (a) Produce the statement of profit or loss (income statement) for Tay Stebites for the year ended 30 September 2017 and a statement of financial position (balance sheet) as at the same date. Use appropriate headings and show your workings. (b) Comment briefly on your treatment of Tay's family car in the financial statements