Sale revenue $ 153,000

Less: Cost of sale

Opnening Inventory $ 2,000
Purchases $ 50,000
Less: Closing inventory $ 5,000 $ 47,000
Gross Profit $ 106,000
Operating Expense
Administrative assistant wages $ 10,000
Delivery costs $ 8,000
Electricity $ 5,000
Rent and rates $ 20,000
Miscellaneous expenses $ 16,500
Annual depreciation $ 9,000
Other wages $ 25,000
Accured telephone bill $ 800 $ 94,300
Operating Profit (loss) before Interest and tax $ 11,700
Investment income $ 5,000
Less Interest Paid $ 120
Income before tax $ 16,580
Taxation $ 7,000
Net Income (loss) $ 9,580
Share capital
Begining Balance $ 200,000
Closing balance $ 200,000
Retained earning
Opening balance $ 5,000
Net income $ 9,580
Dividends $ (1,000) $ 13,580
Closing balance of equity $ 213,580
Assets
Current assets
Cash at bank $ 46,165
Trade Receivables $ 4,465
Inventory $ 5,000
Total current assets $ 55,630
Non-current asset
Long term Investment $ 50,000
Land and Buildings $ 110,000
Motor Vehicles $ 36,000
Accumulated depreciation $ (9,000)
Total Non-current assets $ 187,000
Total Assets $ 242,630
Liabilities and Equity
Current Liabilities
Trade Payable $ 1,750
Income Tax Payable $ 1,000
Accruals expenses $ 800
Accruals dividends $ 500
Total current liabilities $ 4,050
Long term Liabilities
Long term loan $ 25,000
Total Liabilities $ 29,050
Sharehoder's Equity
Share capital $ 200,000
Retain earning $ 13,580
Total Equity $ 213,580
Total Equity and Liabilities $ 242,630