You are given the following information relating to Mr Khan Ltd. Trial balance as at 30 September 2020 as follows: DR CR Inventory as at 1 October 2019 19.134 106,483 Wages & Salaries Sales Freight in 2,229 Rent Gas 18,465 20,005 462,970 Purchases 226,855 Account Receivables 74,400 Account Payables 53,749 Machinery at cost 232,140 Computers at cost Machinery: Accumulated Depreciation at 1 Oct 2019 Computers: Accumulated 97,080 Depreciation at 1 Oct 2019 Retained Earnings as at 1 Oct 2019 34,102 Bank Bad debt expenses Allowance for doubtful debts as at 1 Oct 2019 Share Capital Total 13,408 77,580 54,600 1,807 2,276 191,319 844,301 844,301 Additional information: . The inventory was counted at 30 September 2020 and was valued at 19,491. Depreciation is to be applied at the following rates: Machinery: (reducing balance) 15% Computers: (straight-line) 25% The amount shown for rent on the trial balance includes a payment of 10,500, which represents twelve months' rent to 31 May 2021. Gas charges incurred for which no invoices have yet been received amount to a total of 4,786. The allowance for doubtful debts is to be set at 4 per cent of accounts receivable. Allowance for doubtful debts as at 1 Oct 2019 Share Capital Total Additional information: 2,276 191,319 844,301 844,301 . The inventory was counted at 30 September 2020 and was valued at 19.491. Depreciation is to be applied at the following rates: Machinery: (reducing balance) 15% Computers: (straight-line) 25% The amount shown for rent on the trial balance includes a payment of 10,500, which represents twelve months' rent to 31 May 2021. Gas charges incurred for which no invoices have yet been received amount to a total of 4,786. The allowance for doubtful debts is to be set at 4 per cent of accounts receivable. Required: Prepare the following financial statements for Mr Khan's Ltd business: 1. An income statement for the year ended 30 September 2020. (11.5 Marks) 2. A balance sheet as at 30 September 2020. (13.5 Marks) 3. Read the financial statements prepared above and interpret your findings