The information below was obtained from Trell plcs bookkeeping records as at 31 August 2016. (i) Prepare the following financial statements for Trell plc for the year ended 31 August 2016: (a) statement of profit or loss (b) statement of financial position (ii) Describe the advantages and disadvantages of showing the factory at its valuation rather than its depreciated historical cost. Trell plc Trial Balance as at 31 August 2016 000 Bank overdraft 1,008 Dividends paid 129 Factory accumulated depreciation 1,980 Factory cost 4,320 Investments short term 102 Manufacturing equipment cost 11,340 Manufacturing equipment depreciation 2,139 Manufacturing overheads 2,664 Manufacturing wages 2,880 Office expenses 1,440 Opening inventory finished goods 2,304 Opening inventory raw materials 1,332 Opening inventory work in progress 1,476 Overdraft interest 123 Purchases of raw materials 4,608 Retained earnings 1,569 Revenue 28,749 Salaries administrative staff 1,512 Salaries sales staff 1,224 Selling and advertising 1,779 Share capital 2,160 Share premium 720 Trade payables 1,155 Trade receivables 2,088 Trade receivables written off 159 Further information: (1) Inventory was counted at 31 August 2016 and was valued as follows: 000 Raw materials 1,260 Work in progress 916 Finished goods 2,130 (2) Plant and machinery is to be depreciated by 20% of cost. The factory is to be depreciated by 2% of cost. (3) Just before the year end, Trell plcs factory was professionally valued at 6,000,000. The directors have decided to recognise the gain on revaluation. (4) Corporation tax of 2,470,000 is to be provided for the year.