The following trial balance has been extracted from the books of Mercedes as of 31 March 20x9:

	DR	CR
Interest income received		12000
Insurance	4400
Opening Inventory	16000
Drawing	6000
Bank	20000
Vehicle at cost	12000
Capital		50000
Land	80000
Wages / Salaries	10000
Creditors		14000
Debtors	10000
Electricity	3600
Miscellaneous expenses	9200
Purchases	24800
Sales		120000
	196000	196000

Additional information:

i. Inventory on 31 March 20x9 was 2000.

Required:

1. Prepare Mercedes Income statement for the year to 31 March 20x9 and statement of financial position as at that date.

[60 marks]

2. Accounting information presented in the income statement and statement of financial position helps to meet the needs of its users.

Discuss