Two The Whispering Cove plc has provided the following as at December 31, 2017 Cost of Sales Closing Stock DR 700,000 CR 210,000 10% Debenture Debenture Interest 350,000 20,000 General Reserves 40,000 Retained Earnings 20,000 Goodwill 200,000 Ordinary Share Capital @ $2 400,000 10% Preference Share Capital @ $1 400,000 1,300,000 Sales Turnover Debtors 60,000 Bank 8,000 Administrative Costs 122,000 Selling and Distribution Costs 139,000 Property Plant & Equipment 600,000 Motor Vehicle 500,000 Provision for Depreciation on Motor Vehicle 40,000 Creditors 38,000 Interim Ordinary Shares Dividend 5,000 2,576,00 2,576,000 0 Additional Details Provided 1. The motor vehicle is to be depreciated at 10% p.a. on the reducing balance basis. The annual depreciation charge is to be added equally to the administrative costs and selling and distribution costs 2. The administrative costs were prepaid by $2,000; while the selling and distribution costs were owing by $6,000 3. The goodwill is to be written down by 25% 4. Prior to the end of the year the directors voted to support a resolution to pay final ordinary shares dividends at $0.10 per share; as well as the amount due for the preference shares dividends 5. The corporation tax is estimated at $40,000 Required 1. Prepare the following for the year ending December 31, 2017: a) The Statement of Profit and Loss b) The Statement of Change in Equity (14 marka) (8 marks) NOTE: The Statement of Financial Position is NOT required 2. State three factors that may influence a company's decision to pay dividends