The following is the statement of financial position of WW Associates as at 31 December 2014:

ment for the year to that 3.7 The following is the statement of financial position of ww 2014: E Statement of financial position as at 31 December 2014 25,300 ASSETS Non-current assets Machinery Current assets Inventories Trade receivables Prepaid expenses (rates) Cash 12.200 21,300 400 8.300 42,200 67.500 Total assets EQUITY AND LIABILITIES Equity Original Retained earnings 25,000 23,900 48,900 Current liabilities Trade payables Accrued expenses (wages) 16.900 1,700 18,600 67,500 Total equity and liabilities During 2015, the following transactions took place: 1 The owners withdrew 23,000 of equity in cash. 2 Premises were rented at an annual rental of 20,000. During the year, rent of 25,000 was paid to the owner of the premises. 3 Rates on the premises were paid during the year for the period 1 April 2015 to 31 March 2016 and amounted to 2,000, 4 Some machinery (a non-current asset), which was bought on 1 January 2014 for 13,000, has proved to be unsatisfactory. It was part-exchanged for some new machinery on 1 January 2015 and WW Associates paid a cash amount of 6,000 The new machinery would have cost 15,000 had the business bought it without the trade-in. 5 Wages totalling 23,800 were paid during the year. At the end of the year, the business owed 860 of wages. 6 Electricity bills for the four quarters of the year were paid totalling 2,700 7 Inventories totalling 143,000 were bought on credit 8 Inventories totalling 12.000 were bought for cash 9 Sales revenue on credit totalled $211.000 (cost 127.000). 10 Cash sales revenue totalled 42,000 (cost $25,000). 11 Receipts from trade receivables totalled 198,000. 12 Payments to trade payables totalled 156,000. 13 Van running expenses paid totalled 17,500. The business uses the reducing-balance method of depreciation for non-current assets at the rate of 30 per cent each year Required: Prepare an income statement for the year ended 31 December 2015 and a statement of financial position as at that date. PIC.COLLAGE