XYZ Company, a retail business, has been trading for some time. The statement of financial position at 31 December Year 2021 was as follows: Statement of financial position as at 31 December Year 2021 a) Prepare the Statement of Financial Position and the Statement of Financial Performance of the company XYZ for the year ended 31.12.2022 according to IAS 1 Presentation of Financial Statements. Please show all workings. [54 marks] b) Equity increases or decreases in a business only when the owners of the business add or take out cash from the business. Do you agree? Explain your arguments [6 marks] During the year to 31 December Year 2022 (the following year) of the business, the following transactions took place: 1. An additional item of plant was bought for 5,000, which was paid immediately. 2. The owners of the business withdrew 5,500 in cash and inventories that had cost 4,000. These were for the owners' personal use. 3. Sales revenue of 68,500 was made. The inventories sold cost 31,500. 21,000 of this sales revenue was for cash (immediate settlement) and the remainder was made on credit. 4. Inventories costing 29,500 were bought, all on credit. 5. Cash totaling 48,500 was received from trade receivables. 6. A credit customer who owed 1,000 went bankrupt 8. Electricity bills for the first nine months of the year were paid totaling 1,500. At the end of the year, the bill for the last three months of the year (500) remained unpaid. 9. Wages totaling 6,000 was paid. * 10. Interest of 2,000 was paid on the borrowings from the BB Bank.* 11. General expenses of 5,500 were paid. * - These three payments represented the full expense for the year (that is, there were no accruals and prepayments). You are told that the business wishes to depreciate all plant owned at the end of the year by 10% of its cost value. Assume straight line method of depreciation. During the year to 31 December Year 2022 (the following year) of the business, the following transactions took place: 1. An additional item of plant was bought for 5,000, which was paid immediately. 2. The owners of the business withdrew 5,500 in cash and inventories that had cost 4,000. These were for the owners' personal use. 3. Sales revenue of 68,500 was made. The inventories sold cost 31,500. 21,000 of this sales revenue was for cash (immediate settlement) and the remainder was made on credit. 4. Inventories costing 29,500 were bought, all on credit. s. Cash totaling 48,500 was received from trade receivables. 6. A credit customer who owed 1,000 went bankrupt and it was clear at the end of the year that no cash would ever be forthcoming from this customer. 7. Trade payables were paid 30,500. XYZ Company, a retail business, has been trading for some time. The statement of financial position at 31 December Year 2021 was as follows: Statement of financial position as at 31 December Year 2021 a) Prepare the Statement of Financial Position and the Statement of Financial Performance of the company XYZ for the year ended 31.12.2022 according to IAS 1 Presentation of Financial Statements. Please show all workings. [54 marks] b) Equity increases or decreases in a business only when the owners of the business add or take out cash from the business. Do you agree? Explain your arguments [6 marks] During the year to 31 December Year 2022 (the following year) of the business, the following transactions took place: 1. An additional item of plant was bought for 5,000, which was paid immediately. 2. The owners of the business withdrew 5,500 in cash and inventories that had cost 4,000. These were for the owners' personal use. 3. Sales revenue of 68,500 was made. The inventories sold cost 31,500. 21,000 of this sales revenue was for cash (immediate settlement) and the remainder was made on credit. 4. Inventories costing 29,500 were bought, all on credit. 5. Cash totaling 48,500 was received from trade receivables. 6. A credit customer who owed 1,000 went bankrupt 8. Electricity bills for the first nine months of the year were paid totaling 1,500. At the end of the year, the bill for the last three months of the year (500) remained unpaid. 9. Wages totaling 6,000 was paid. * 10. Interest of 2,000 was paid on the borrowings from the BB Bank.* 11. General expenses of 5,500 were paid. * - These three payments represented the full expense for the year (that is, there were no accruals and prepayments). You are told that the business wishes to depreciate all plant owned at the end of the year by 10% of its cost value. Assume straight line method of depreciation. During the year to 31 December Year 2022 (the following year) of the business, the following transactions took place: 1. An additional item of plant was bought for 5,000, which was paid immediately. 2. The owners of the business withdrew 5,500 in cash and inventories that had cost 4,000. These were for the owners' personal use. 3. Sales revenue of 68,500 was made. The inventories sold cost 31,500. 21,000 of this sales revenue was for cash (immediate settlement) and the remainder was made on credit. 4. Inventories costing 29,500 were bought, all on credit. s. Cash totaling 48,500 was received from trade receivables. 6. A credit customer who owed 1,000 went bankrupt and it was clear at the end of the year that no cash would ever be forthcoming from this customer. 7. Trade payables were paid 30,500