Tom's Trading is a sole proprietorship business. It produced the following balance for its business after eleven months of a financial year starting from 1 January 2019: $'000 Sales 120.0 Cost of sales 80.0 Electricity expense 16.0 Rental expense 11.0 Wages expense 16.5 Other operating income 2.0 Inventories Trade receivables 9.5 21.0 8.0 120.0 Cash at bank Plant and machinery (cost) Accumulated depreciation Trade payables Drawings 30.0 60.0 10.0 In the final month of the financial year, the following transactions took place: Credit sales of $30,000, the cost of inventories sold was $18,000. The owner made a new contribution of $20,000 in cash. Trade payables totalling $15,000 were paid. Inventories of $10,000 were purchased in credit term. Rental of $3,000 has been paid for the period of December 2019 to February 2020. Cash totalling $20,000 was received from trade receivables. Wages for December 2019 totalling $4,000 was paid. Wages for December 2019 totalling $4,000 was paid. A new machine was purchased for $15,000, fully funded by a bank loan of 2 years and it was delivered on 31 December 2019. Additional information as below: 1. Capital as at 1 January 2019 was $80,000. 2. An invoice for electricity to the value $2,000 for the quarter ended 31 December 2019 was only received on 3 January 2020. 3. Depreciation has not yet been charged on plant and machinery amounting to $6,000. 4. At the end of the year, it is recognized that there is a bad debt of $2000. (a) Calculate the cash balance as at 31 December 2019. Show with workings. (2 points) (b) Calculate the net profit generated for the year 2019 and the owner's equity as at 31 December 2019. Show with workings. (8 points)