You are provided with the following financial accounting data of Marco Limited Company.

Trial Balance as at 31/12/2019

	DR 000	CR 000
Bank	100
Inventory at 1/1/2019	2 400
Utilities	400
Insurance	300
Rent and rates	1 000
Maintenance of motor vehicles	306
Salesmen salaries	200
Directors remuneration	150
Carriage outwards	120
Carriage inwards	80
Debenture interest	60
Warehouse expenses	40
Wages and salaries	176
Non-Current assets at cost:
Buildings	10 000
Plant and equipment	1 400
Motor vehicles	320
Rental		1 000
Accumulated depreciation of NCA:
Buildings		4 000
Plant and equipment		480

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Additional information as at 31/12/2019:

1. Inventory as at 31/12/2019 was valued at 1,500,000

2. Insurance outstanding at the financial year end was 250,000.

3. Depreciation is to be provided as follows:

   • Building at 5% on a straight-line basis;

   • Plant and equipment at 20% on reducing balance basis;

   • Motor vehicles at 25% on reducing balance basis.

4. A customer has gone bankrupt owing 76,000 and the debt is not expected to be recovered.

5. A provision for bad debts of 5% is to be established

1. (a) Prepare Income Statement for the year ended 31/12/2019.

2. (b) Prepare Statement of Financial Position as at 31/12/2019.