Adnett

Income statement for the year ended 31st May 2005

$ $ $
Revenue 3,500,000
Less: Sales Returns 15,000
3,485,000
Cost of Sales
Opening stock 515,000
Purchases 2,170,000 2,685,000
Less:Purchase returns 17,000
2,668,000
Add: Carriage inwards 105,000
2,773,000
Wages and salaries (50%) 146,000
Heating and Lighting (40%) 108,000
Depreciation on Plant (25%) 200,000
Depreciation on Building (25%) 13,000
3,240,000
Less: Closing inventory 560,000 2,680,000
805,000
Operating Expenses:
Distribution Costs
Wages and salaries (25%) 73,000
Heating and Lighting (20%) 54,000
Depreciation on bulidngs (50%) 26,000 153,000
652,000
Administrative Expenses
Wages and salaries (25%) 73,000
Heating and Lighting (40%) 108,000
Depreciatin on bulidings (25%) 13,000
Administrative expenses 60,000
Directors remuneration 60,000
Allowance of doubtful debts 10,000
Discount allowed 70,000
Discount received 80,000 314,000
Profit from operations 338,000
Finance Costs
10% of Loan Notes 58,000
Profit before tax 280,000
Less:Provision for income tax 70,000
Net profit after tax 210,000

Adnett
Balance sheet as at 31st May, 2005
$ $
Assets
Non-Current Assets:
Plant at cost 1,200,000
Less: accumulated Dep'n 600,000 600,000
Buliding at cost 1,040,000
Less: accumulated Dep'n 212,000 828,000
Land at cost 345,000
1,773,000
Current Assets:
Bank balance 147,000
Trade receivables 660,000
Closing inventory 560,000 1,367,000
Total assets 3,140,000
Equity & Liabilities
Ordinary shares 960,000
Share premium 40,000
Retained earnings 290,000
General reserve 35,000
Others 105,000 1,430,000
Non- Current Liabilities:
10% loan notes 580,000
Current Liabilities:
Trade payables 1,030,000
Wages and salaries payable 42,000
Interest on Notes payable 58,000 1,130,000
Total equity and liabilities 3,140,000

Adnett
Statement of changes in shareholders equity for the year ended 31st May, 2005
Years Share Capital Share prenium other reserve General reserve Accumulated Profit Total
Year 1 960,000 40,000 105,000 35,000 290,000 1,430,000
Year 2 - - - - 500,000 500,000
- - - - -210,000
Bal yr 2 960,000 40,000 210,000 1,210,000