These following financial statement balances are for Wellington Design Services for the end of the financial year, 30 June 2017:

1. 

Question 1 (10 marks) These following financial statement balances are for Wellington Design Services for the end of the financial year, 30 June 2017: Accounts Payable $11,000 Accounts Receivable 9,800 Accumulated Depreciation Building 14,000 Advertising incurred 1,200 Advertising Payable 1,200 Bank Loan 110,000 Building 140,000 Capital 163,000 Cash 25,000 Depreciation 7,000 Drawings 10,200 Fees Revenue 100,000 Inventory 20,000 Land 120,000 Motor Vehicle Expenses 20,000 Other Expenses 38,000 Rent Revenue 50,000 Rent Revenue Received in Advance 2,000 Salaries Expense 40,000 Supplies used 20,000 Required: a) Prepare a Statement of Profit or Loss for Wellington Design Services at 30 June 2017. (7 marks) b) Discuss how management would use a Statement of Profit or Loss to assist in their decision making. (3 marks) (7 + 3 = 10 marks)