Use the information below to answer the requirements

REQUIRED: Prepare (i) profit and Loss acccount (ii) Statement of Financial Position (iii) Cash Flow statement (iv) Changes in Equity

Paul hopes to make his fortune by selling a new type of food for people wishing to lose weight. The food, known as the Wonder Diet, is available direct from the manufacturers at 300 per packet but it can only be ordered in consignments of 500 packets. Paul has approached you to help him prepare a budget for the first 3 months of operation so that if necessary he can secure overdraft facilities from the bank. He has supplied the following information: Notes 1) He anticipates that the stationery will last 6 months and the telephone system will need replacing in two years' time ii) Sales will all be made on a cash basis iii) All purchases and expenses must be paid for by the end of the month