Preparing an income statement for a limited company The following is an extract from the trial balance of Airlie plc at 31 March 2015.

Additional information:

• Inventory at 31 March 2015 was valued at $75 000.

• Administration expenses of $2000 have been paid in advance.

• Distribution costs of $4000 are outstanding.

• Depreciation is to be provided as follows:

• Plant and machinery: 10 per cent per annum on a straight-line basis, charged to cost of sales.
• Motor vehicles: 20 per cent per annum on a reducing-balance basis, charged to distribution expenses.

• The interest on the 8 per cent debenture has been paid up to 31 December 2014.

• The preference share dividend is paid in two equal instalments. The preference share dividend for the six months ended 31 March 2015 has not yet been paid.

• The directors have recommended a final ordinary share dividend of $0.15 per share. Required Prepare an income statement for Airlie plc for the year ended 31 March 2015.

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Dr (S000) Cr ($00) Revenue 2245 Purchases 983 Inventory at 1 April 2014 65 Distribution costs 145 Administration expenses 102 Finance costs 275 Ordinary shares interim dividend paid 20 Plant and machinery: cost 540 Plant and machinery: provision for depreciation 324 Motor vehicles: cost 250 Motor vehicles: provision for depreciation 90 Ordinary share dividend paid 85 8% debenture 2019-2021 150 Issued ordinary shares of $0.25 each 500 10% preference shares 80