The following trial balance was extracted from the books of Mike Karuvadu on 31 Dec 2018. From it and the note inventory, prepare his Statement of Profit or Loss for the year ending 31 Dec 2018 and a Statement of Financial Position as at that date:

Dr Cr

$ $

Sales 216,420

Purchases 109,680

Inventory: 1 Jan 2018 10,410

Carriage outwards 2,115

Carriage inwards 1,840

Return inwards 5,900

Return outwards 6,720

Salaries and wages 42,800

Motor expenses 1,912

Rent 7,800

Sundry expenses 1,318

Motor vehicles 15,400

Fixtures and fittings 1,912

Accounts receivable 24,200

Accounts payable 19,100

Cash at bank 5,100

Cash in hand 1,240

Drawings 30,440

Capital ________ 19,827_

262,067 262,067

Inventory at 31 Dec 2018 was $11,290

(20 marks)