The following trial balance was extracted from the books of McDowell Limited at $31$ December $2023$:

The following additional information is available:

i$)$ Inventory at $31$ December $2023$ was $$99,700.$

ii$)$ Depreciation is to be provided on the following basis:

Furniture and fixtures: $10\%$ per annum using the straight$-$line method

Office equipment: $20\%$ per annum using the reducing balance method

iii$)$ Advertising expense stated in the trial balance included an amount of $$8,000$ paid for the period from $1$ January $2024$ to $31$ March $2024.$

iv$)$ Accrued salaries at $31$ December $2023$ were $$23,000.$ This has not been recorded in the books.

Required:

a$)$ Prepare the income statement for the year ended $31$ December $2023.$

b$)$ Prepare the statement of financial position at $31$ December $2023.$