The following is the statement of financial position for Gandolf, a ball bearings distributor, at 31 December Year 5:

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During Year 6, the following took place:

1.	Receipts from trade receivables totalled 235,000.
2.	Payments to trade payables totalled 104,000.
3.	Credit sales revenue for the year totalled 262,000 (cost 143,000).
4.	Depreciation of land and buildings is 2% on cost, depreciation of motor vans is 25% on cost and depreciation of fixtures and fittings is 10% on cost per year.
5.	Inventories totalling 137,000 were purchased on credit.
6.	Interest on the loan is 6,000 a year, of which 3,000 has been paid by the end of the year.
7.	Salaries and wages totalling 56,200 were paid during the year and a further 4,000 was outstanding at the end of the year.
8.	Rates of 10,800, for the period to 31 December Year 6, were paid during the year.
9.	Heating and lighting bills for the first three quarters totalling 18,000 were paid during the year. The final quarter bill totalling 3,300 had not been paid by the year end.
10.	Gandolf withdrew 8,500 during the year for his own use.
11.	Motor running expenses totalling 9,400 were paid during the year.

Required:

Prepare an income statement for the year to that date.

(Fill in the relevant cells with its corresponding figures. Negative figures should be entered in brackets.)

Gandolf
Income statement for the year ended 31 December Year 6
Sales revenue
Cost of sales
Gross profit
Salaries and wages (56,200 + 4,000)
Rates
Heating and lighting (18,000 + 3,300)
Motor running expenses
Depreciation Motor vans (25% 30,000)
Land and buildings (2% 86,500)
Fixtures and fittings (10% 20,000)
Loan interest
Profit for the year

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