The statement of financial position of Wind Ltd as of 31 December 2020 is presented below:

The following additional information is available:

1. The buildings have an estimated useful life of 25 years and an estimated residual value of 5,000. The straight-line method is applied to calculate annual depreciation expenses. The fair value of the buildings as of 31 December 2021 is estimated to be 1,200,000 and the company revalued the buildings to their fair value on that day.

2. The plant and equipment are depreciated using the reducing balance method at a rate of 20 percent. The plant and equipment are valued using the cost model.

3. The motor vehicles consisted of a heavy truck with a cost of 76,000 and a light truck with a cost of 40,000. Both trucks had an estimated useful life of 8 years. The heavy truck had an estimated residual value of 4,000 and the light truck had an estimated residual value of 2,000. The trucks are valued using the cost model. As of 31 December 2020, both trucks had been used for 4 years. On 1 January 2021, the operating manager considered that the useful life of the heavy truck only remained 3 years. The residual value remained unchanged. The trucks are depreciated using the straight-line method. The light truck was sold on 30 June 2021 for 20,000 and the full amount was received in cash on that day.

4. The prepayments of 5,000 as of 31 December 2020 represented prepaid property insurance for the period from 1 January 2021 to 31 March 2021. On 1 April 2021, the company paid 24,000 for insurance, 6,000 of which were prepaid insurance for the period from 1 January 2022 to 31 March 2022.

5. On 1 May 2021, the company made a one-for-six bonus issue to the existing shareholders. The bonus issue was funded by the retained earnings. Immediately after the bonus issue, the company made a one-for-four right issue at 1.60 per share.

6. The loan notes were issued by a commercial bank to the company as of 31 December 2019. The loan notes are secured and have an annual interest rate of 10%. Payment for the interest associated with the loan is made every half year. On 1 July 2021, the company paid the loan interest for the first half year. As of 31 December 2021, the loan interest for the second half year has not been paid.

7. During the 2021 financial year, the company purchased inventories on credit for 710,000 and sold inventories (which cost 1,350,000) on credit for 2,900,000.

8. During the 2021 financial year, receipts from trade receivables totaled 1,387,500.

9. A dividend of 0.20 per share is approved by the board on 1 December 2021. The dividend has been declared to the shareholders but is unpaid as of 31 December 2021.

10. Electricity expense for the first three quarters of the 2021 financial year totaled 26,000 and was paid on 1 October 2021. The electricity bill for the fourth quarter has not been received by the company as of 31 December 2021. The company estimated that the electricity expense for the fourth quarter was approximately 8,000.

11. Wages totaling 654,000 were paid in cash during the 2021 financial year. Wages for casual staff, amounting to 12,000, have not been paid as of 31 December 2021.

12. Petrol costs totaling 9,000 were paid in cash during the 2021 financial year.

13. Payments to trade payables totaled 970,000 during the 2021 financial year.

14. An accounting error caused sales revenue of the 2021 financial year to be overstated by 240,000.

Required:

For Wind Ltd, prepare (a) the income statement for the year ended on 31 December 2021, Ignore the effect of corporate tax. Please only enter numbers without any commas and pound signs. Enter your calculated amount without rounding. If an amount needs to be subtracted, show it in parentheses.

The statement of financial position of Wind Ltd as of 31 December 2020 is presented below: Wind Ltd Statement of Financial Position as of 31 December 2020 Cost Accumulated depreciation 000 000 000 ASSETS Non-current assets Property, plant, and equipment Buildings 1250 (249) 1001 Plant and equipment 720 (144) 576 Motor vehicles 116 (55) 61 2086 (448) 1638 Current assets Inventories 820 Trade receivables 430 Prepayments 5 Cash 18 1273 Total assets 2911 EQUITY AND LIABILITIES Equity Share capital 1200 1,200,000 ordinary shares of 1 each, fully paid Retained earnings 458 1658 Non-current liabilities 300 Borrowing (secured 10% loan notes) Current liabilities Trade payables 953 Total equity and liabilities 2911 Wind Ltd Income statement for the year ended on 31 December 2021 000 Revenue Cost of sales Gross profit Operating expense Depreciation expense Wages expense Electricity expense Petrol expense Insurance expense Operating profit Interest expense Gain (loss) on asset disposal Profit for the year The statement of financial position of Wind Ltd as of 31 December 2020 is presented below: Wind Ltd Statement of Financial Position as of 31 December 2020 Cost Accumulated depreciation 000 000 000 ASSETS Non-current assets Property, plant, and equipment Buildings 1250 (249) 1001 Plant and equipment 720 (144) 576 Motor vehicles 116 (55) 61 2086 (448) 1638 Current assets Inventories 820 Trade receivables 430 Prepayments 5 Cash 18 1273 Total assets 2911 EQUITY AND LIABILITIES Equity Share capital 1200 1,200,000 ordinary shares of 1 each, fully paid Retained earnings 458 1658 Non-current liabilities 300 Borrowing (secured 10% loan notes) Current liabilities Trade payables 953 Total equity and liabilities 2911 Wind Ltd Income statement for the year ended on 31 December 2021 000 Revenue Cost of sales Gross profit Operating expense Depreciation expense Wages expense Electricity expense Petrol expense Insurance expense Operating profit Interest expense Gain (loss) on asset disposal Profit for the year