The following is the trial balance of Crown Ltd as on 31 December 2016:

Dr Cr

$ $

Share capital issued: ordinary shares 20cents 375,000

Accounts receivable and accounts payables 169,600 74,900

Inventory 31 December 2015 81,300

Bank 17,900

Premises at cost 265,000

Machinery at cost 109,100

Motor vehicles at cost 34,700

Depreciation provisions at 31.12.2015:

Premises 60,000

Machinery 41,400

Motor vehicles 18,200

Sales 975,600

Purchases 623,800

Motor expenses 4,300

Repairs to machinery 3,600

Sundry expenses 2,900

Wages and salaries 241,500

Directors remuneration 82,600

Retained profits as at 31.12.2015 31,200

General reserve _______ 60,000

1,636,300 1,636,300

Given the following information, you are to draw up an income statement for the year ending 31 December 2016, and a statement of financial position as at that date:

a) Authorized share capital: $500,000 in ordinary shares of 20p.

b) Inventory at 31 December 2016 $102,400.

c) Motor expenses owing $280.

d) Ordinary dividend proposed of 5 per cent.

e) Transfer $7,500 to general reserve.

f) Provide for depreciation: motor vehicles and machinery 20% on cost; premises 5% on cost