Question 1 The following information relates to Teddington Tools who supply tools to the motor repair trade. The business had its year-end on 30 June 2016 when the following amounts were found in the accounts. Selling and distribution costs Equity capital at 1 July 2015 Inventory at 1 July 2015 Motor vehicles at cost Motor vehicle depreciation at 1 July 2015 Revenue Bank balance Plant & machinery at cost Plant & machinery depreciation at 1 July 2015 Long term loan Purchases Trade receivables Administrative expenses Trade payables 8,000 41.000 17,000 84,000 45,000 248,500 4,000 124,000 58.000 33,000 164,000 37,000 12,500 25,000 . . Further information: Inventory at 30 June 2016 cost 20,400. *Administrative expenses includes electricity charges to 31 May 2016 The charge for the three months to 31 August 2016 is expected to be 900 Selling expenses include 500 paid in advance for advertising which will appear in July 2016 Trade receivables includes 400 which is not expected to be received Depreciation needs to be provided on: Plant and machinery over 10 years on the straight-line basis with 4,000 residual value. Motor vehicles at . . Required: Prepare an Income Statement for the year ended 31 December 2016 and a Statement of Financial Position as at 31 December 2016. (25 marks)