The trial balance for Patronic Manufacturing Ltd at 31 December 2022 was as follows:

	Dr £	CR £
Revenue		2,564,300
Purchases	1,078,250
inventory on 31/12/21	120,500
Production expenses	605,230
Admin expenses	151,530
Distribution expenses	114,250
Wages	300,400
Loan interest	11,000
Equipment at cost	1,100,000
Motor vehicle at cost	256,000
Accumulated depreciation: Equipment 31/12/21 Motor vehicles 31/12/21		320,000 90,400
Trade receivables	219,500
Allowance for irrecoverable debts		2,500
Discounts allowed/received	3,400	3,780
Trade payables		130,400
Bank	80,770
Share Capital		500,000
Retained earnings		129,450
Bank loan (repayable 2025)		300,000
	4,040.830	4,040.830

Notes: The following have not yet been recorded in the trial balance accounts:

i) Patronic Manufacturing provides for depreciation on equipment at 20% on a reducing balance basis. This should be recorded in production expenses.

ii) Depreciation on motor vehicles is charged at 20% on a straight-line basis. This should be recorded in distribution expenses.

iii) The directors have decided that the doubtful debt provision should be set at 4% of the value of the trade receivables at the year end.

iv) Accounting fees relating to the year ended 31 December 2022 are estimated at £8,000. No bill has yet been received. Accountancy costs should be recorded in administration expenses.

v) Inventory at 31 December 2022 is valued at £130,240.

Required: Prepare the Statement of Profit or Loss and Statement of Financial Position for the year ended 31 December 2022.