You are the accountant of Trott Ltd, a business that buys and sells cricket equipment. The trial balance at 31 December 2017 was as follows: Equity Share capital (K1) Retained earnings at 1 January 2017 Revenue Staff cost Inventory at 1 January 2017 Purchases Distribution costs Administrative expenses Loan interest Investment income Tax Receivables and payables Bank Motor vehicles@cost Buildings @ cost Motor vehicles @ accumulated depreciation 1 January Buildings - accumulated depreciation 1 January 2017 Debentures (2020) K K 5,000 5,835 66,980 5,400 3,930 38,760 3,130 3,790 200 250 200 9,290 2,360 3,125 5,000 12,000 1,000 2,400 1,000 84,825 84,825 Additional information: 1. Trott has not made any additions or disposals of tangible non-current assets in th e year. Its depreciation policy is as follows: Motor vehicles @ 20% reducing balance Buildings @ 25 years straight line The depreciation expense for the year is charged to cost of sales. Inventory at the end of the year was valued as follows: Cost (K) NRV (K) Bats 2,500 4,000 Gloves 650 500 Pads 1,000 2,000 Total 4,150 6,500 3. Staff costs are to be apportioned equally across cost of sales, distribution costs a nd administrative expense. 4. The balance of tax on the tax account represents the over/under provision for the prior year. An estimate of K1,500 has been made for the tax payable at the year-end. Prepare in a statement of profit or loss for the year-ended 31 December 2017 and a st atement of financial position at that date.