The following balances have been extracted from the books of account of Lightowler Ltd at 30 April 2015.

Additional information:

• Premises should be depreciated by $540 000.

• Vehicles should be depreciated by $200 000.

• A preference share dividend of $800 000 is outstanding.

• The directors propose to transfer $2 000 000 to a general reserve.

Required

Prepare an income statement and a statement of changes in equity for Lightowler Ltd for the year ended 30 April 2015.

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Dr ($000) Cr ($000) Administration expenses 1100 Auditors' fees 2 200 Cost of sales 44 500 Debenture interest 100 Directors' remuneration 2 600 Dividends paid: ordinary shares 2 200 Dividends paid: preference shares 800 Premises: cost 54 000 Premises: pruvision for deprecialion 6 400 Retained earnings 16 200 Rental income 500 Revenue 92 000 Vehicles: cost 2 000 Vehicles: provision for depreciation 1 600 Wages and salaries 2 600