X2.19 The following information has been extracted from the bookkeeping records of Z plc: Trial balance as at 30 June 20x2 000 E000 25 200 6 50 54 90 120 983 45 600 Administrative overheads Advertising Bank Dividend paid (for year to 30 June 20x1) Trade payables Trade receivables Interest Land and buildings - cost Land and buildings depreciation Loan Directors' remuneration Plant and machinery - cost Plant and machinery - depreciation Retained earnings as at 1 July 20x1 Purchases Revenue Share capital Share premium Inventories as at 1 July 20X1 Wages - administrative staff Wages - distribution staff Wages - manufacturing 35 550 150 180 450 1,200 200 300 18 44 30 140 2,735 2,735 Notes 1. 2. . 3. Inventories at 30 June 20x2 were valued at 19,000. Depreciation is to be charged on the following bases: Land and buildings 2% of cost Plant and machinery - 25% of reducing balance. The corporation tax charge has been estimated at 22,000 for the year. Prepare Z ple's statement of profit or loss for the year ended 30 June 20x2 and its statement of financial position as at that date. These should be in a form suitable for publication insofar as this is possible from the information provided. [15] Explain why Z ple's cashflow statement is also of importance in understanding the financial health of the company. (5) (Total 20) (i) Microbeads are small plastic particles which are used in many cosmetics and cleaning products. Research has shown that these particles have found their way into the water supply and are causing environmental damage. (i) Assess, with the use of a diagram, how the use of microbeads will result in a deadweight welfare loss to society. [4] (ii) Evaluate TWO appropriate forms of government intervention that could be used to reduce the production or consumption of products containing microbeads. [6] [Total 10]