Fill in the outline projected income statement for Designer Dresses Ltd above for the six months to 30 June, using the information contained in Example‰2.1.

Data from Example‰2.1

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Designer Dresses Ltd is a small business to be formed by James and William Clark to sell an exclusive range of dresses from a small boutique. On 1 January, they plan to invest £50,000 cash to acquire 25,000 £1 shares each in the business. Of this, £30,000 is to be invested in new fittings in January. These fittings are to be depreciated over three years on the straight-line basis-their scrap value is assumed to be zero at the end of their lives. (The straight-line basis of depreciation allocates the total amount to be depreciated evenly over the life of the asset.) In this case, a half-year's depreciation is to be charged in the first six months. The sales and purchases projections for the business are as follows: Jan 10.2 20.0 9.0 Feb 30.6 Mar Apr May June 30.6 40.8 40.8 51.0 25.0 25.0 30.0 9.0 9.0 9.0 Sales revenue (2000) Purchases (2000) Other costs* (2000) **Other costs' includes wages but excludes depreciation. 30.0 9.0 30.0 9.0 Total 204.0 160.0 54.0 The sales will all be made by credit card. The credit card business will take one month to pay and will deduct its fee of 2 per cent of gross sales before paying amounts due to Designer Dresses. One month's credit is allowed by suppliers. Other costs shown above do not include rent and rates of £10,000 per quarter, payable on 1 January and 1 April. All other costs will be paid in cash. The value of closing inventories at the end of June is expected to be £58,000.