The following balances were obtained from the books of Tim Curry plc as at December 31, 2020.

	DR	CR
Cost of Sales	758,500
Closing Stock	210,000
10 % Debenture		350,000
Debenture Interest	20,000
General Reserves		40,000
5% Loan		200,000
Loan Interest	6,000
Retained Earnings	20,000
Goodwill	200,000
Ordinary Share Capital @ $2		400,000
10 % Preference Share Capital @ $1		400,000
Share Premium		30,000
Sales Turnover		1,300,000
Debtors	60,000
Bank		8,000
Provision for Bad Debts		5,000
Wages and Salaries	122,000
Insurance	47,000
Management Fees	60,000
Directors Fees	40,000
Motor Vehicle	500,000
Provision for Depn on Motor Vehicle		40,000
Premises	550,000
Machinery and Equipment	220,000
Creditors		33,000
Provision for Depn Mach & Equip		37,500
Interim Preference Shares Dividends	25,000
Interim Ordinary Shares Dividend	5,000
	2,843,500	2,843,500

Additional Notes

1. Wages and salaries owing by 8,000; Insurance is prepaid by 7,000
2. Provide for depreciation as follows

Motor Vehicle	10% RB
Machinery and Equipment	5% SL

3. Goodwill is to be amortized by 15%
4. Corporation tax is estimated to be 42,000
5. The provision for bad debts is to be revised to 10% of debtors. The adjustment is to be treated as administrative expenses
6. Transfer 20,000 from profits to the general reserves
7. The operating expenses are to be apportioned as follows

	Admin	Selling & Dist
Wages and Salaries	60%	40%
Insurance	50%	50%
Management Fees	50%	50%
Directors Fees	70%	30%
Depreciation	40%	60%

8. The following proposals were approved by the directors

1. Final ordinary shares premium @ 5%
2. New issue of 50,000 Ordinary shares for a total value of 110,000

Required

1. State three factors that may influence a companys decision to pay dividends

2. Briefly explain three non cash dividend options

3. Prepare the following

1. The Statement of Profit and Loss
2. The Statement of Change in Equity
3. The Statement of Financial Position