The following list of account balances has been prepared by Pyramid plc, on 31 May 2021, which is the end of the company's accounting period: Ordinary share capital (50p shares) 400,000 Share premium account 200,000 Retained earnings - 31 May 2020 283,500 Software (Note 1) 215,500 Freehold land at cost 700,000 Dividends paid 50,000 Plant and equipment at cost 150,000 Accum depctn - plant and equipment - 31 May 2020 83,500 Furniture and fixtures at cost 125,000 Accum depctn furniture and fixtures - 31 May 2020 40,750 Loan notes (Note 3) 100,000 Trade receivables/trade payables 102,630 103,250 Bank overdraft 46,130 Inventories - raw materials at cost- 31 May 2020 141,150 Purchases raw materials 761,100 Production overheads 375,000 Revenue (Note 5) 1,526,750 Share issue proceeds (Note 8) 350,000 Administrative expenses (Note 4) 212,200 Selling and distribution expenses 116,800 Inventories - finished goods - 31 May 2020 184,500 3,133,880 3,133,880 Additional information: (1) The software intangible asset represents capitalised development costs in respect of an algorithm developed to allow the company to make customised recommendations to its customers. The software is considered to have an indefinite useful life, however, changes in customer preferences have indicated an impairment of the value of the software may have occurred. The results of an impairment review carried out as at 31 May 2021 indicated that fair value less costs of disposal is 210,000 and value in use is 202,750. All expenses relating to intangible assets are presented in administrative expenses. (2) Depreciation for the year is to be charged as follows: Plant and equipment 8% on cost - charged to cost of sales Furniture and fixtures 10% on cost-charged to administrative expenses (3) The loan notes have a nominal value of 100,000 and a coupon interest rate of 2% pa payable in arrears. The effective interest rate is 8%. They were issued on 1 June 2020 at a discount of 10% and will be redeemed on 31 May 2030 at a premium. When the loan notes were issued the discount on issue was debited to the share premium account. The interest paid has been debited to administrative expenses. (4) Administrative expenses include 5,000 of solicitors' fees relating to the purchase of freehold land during the year. (5) During the year Pyramid plc introduced a returns policy in which customers have the right to return goods for a full refund within 30 days of purchase. Pyramid estimates that 10% of goods sold will be returned. The goods cost Pyramid plc a total of 98,000 to manufacture. Sales for the final month of the reporting period were 127,000, all of which were cash sales. (6) (7) Inventories at 31 May 2021 were: Raw materials Finished goods 150,400 275,350 Income tax on the profits for the year is estimated at 40,000 and is due for payment on 28 February 2022. Pyramid plc had net assets with a carrying amount of 640,000 and a tax base of 580,000 at 31 May 2021. The tax rate for the period was 20%. (8) On 1 March 2021 Pyramid plc issued 400,000 ordinary 50p shares at a premium of 37.5p per share. REQUIRED: Prepare a statement of profit or loss for Pyramid plc for the year ended 31 May 2021 in a form suitable for publication. Prepare a statement of changes in equity for the year to 31 May 2021. Calculate the basic earnings per share for the year to 31 May 2021.