Rose Limited operates a small chain of retail shops that sell high-quality teas and coffees.

Approximately half of sales are on credit. Abbreviated and unaudited financial statements are given below.

Since the unaudited financial statements for Rose Limited were prepared, the following information has become available:

1 An additional £74,000 of depreciation should have been charged on fixtures and fittings.
2 Invoices for credit sales on 31 March 2010 amounting to £34,000 have not been included; cost of sales is not affected.
3 Trade receivables totalling £21,000 are recognised as having gone bad, but they have not yet been written off.
4 Inventories which had been purchased for £2,000 have been damaged and are unsaleable. This is not reflected in the financial statements.
5 Fixtures and fittings to the value of £16,000 were delivered just before 31 March 2010, but these assets were not included in the financial statements and the purchase invoice had not been processed.
6 Wages for Saturday-only staff, amounting to £1,000, have not been paid for the final Saturday of the year. This is not reflected in the financial statements.
7 Tax is payable at 30 per cent of profit after taxation. Assume that it is payable shortly after the year end.
Required:
Prepare revised financial statements for Rose Limited for the year ended 31 March 2010, incorporating the information in 1 to 7 above. (Work to the nearest £1,000.)

Transcribed Image Text:

Rose Limited Income statement for the year ended 31 March 2010 Revenue Cost of sales Gross profit Labour costs Depreciation Other operating costs Operating profit Interest payable Profit before taxation Taxation Profit for the year ASSETS Non-current assets Current assets Inventories Trade receivables Cash 000 12,080 (6,282) 5,798 (2,658) (625) (1,003) 1,512 Statement of financial position as at 31 March 2010 000 Total assets EQUITY AND LIABILITIES (66) 1,446 (434) 1,012 2,728 1,583 996 26 2,605 5,333