The following list of balances has been extracted from the books of Eileen, a sole trader, on 31 December 2016: RM Capital - Eileen 83,800 Sales 259,957 Trade creditors 19,040 Transportation 746 Discount allowed 2,306 Discount received 2.550 Returns outward 13,407 Purchases 135,080 Returns inwards 6,224 Carriage outwards 4,562 Drawings 18,000 Carriage inwards 12,270 Rent, rates and insurance 25,970 Heat and light 11,013 Stationery 2,410 Telephone 5,980 Salaries and wages 38,521 Bad debts 2,008 Cash at bank 4,974 Stock as at 1 January 2016 15.000 Trade debtors 25,154 Equipment at cost 120,740 Provision for depreciation - Equipment at 1 January 2016 50,946 Additional information: 1. Stock as at 31 December 2016 RM15,750. 2. Insurance prepaid RM1,120. 3. Heat and light to be accrued RM1,000, 4. Provision for doubtful debts to be adjusted to 5% of trade debtors. 5. Depreciate equipment 20% on net book value. Required: (a) Prepare a statement of profit or loss (income statement) for the year ending 31 December 2016. (15 marks) (b) Prepare a statement of financial position as at 31 December 2016