VALERIAN Ltd, a retail toy company, commenced operations on 1 July 2016 by issuing 100 000 S2.50 shares, payable in full on application on a first-come, first- served basis. By 22 July 2016 the shares were fully subscribed and duly allotted. There were no share issue costs For the year ending 30 June 2017, the company recorded the following aggregate transactions Sales Interest income Cost of Sales undry income Emplovee entitlements expenses - Sellin Depreciation expense-to be calculated Selling & Distribution Expenses Administration expenses Wages & Salaries - sellin Wages & Salaries - office Doubtful debts expense Interest expense Other borrowin Income tax expense 962 000 3 000 601 000 13 000 5 000 82 000 26 000 90 000 30 000 8 000 7 000 3 000 23 700 enses The following additional information was noted during the preparation of financial statements for the year ended 30 June 2017 (a) A cash dividend of 10 cents per share was declared and paid during the 2017 financial year and a final dividend for 2017 of S15 000 was proposed but not recognised in the financial statements (b) The land was revalued upward by S20 000 (related income tax 6 000) by Verifiable Valuations Pty Ltd during the year ended 30 June 2017 (c) Transferred $10 000 out ofretained earnings into general reserve (d) S40 000 of other loans is repayable in one year. (e) The Bank loan is for 5 years and repayable in full at the end of the term. The interest rate is 9% and it is secured over the land (f) The provision for employee entitlements includes S4 000 payable within 1 year (g) The credit manager's recomm endation that no bad debts be written off was adopted by the directors (h) VALERIAN Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement (i) VALERIAN Ltdmeasures inventory at the lower of cost and net realizable value The cost model is applied to buldings, plant and equupment