You are given the following simplified statements of financial position of the Windysand Company as at 31 December:

a How much profit does it at first seem that the company made during year 2?
b How would your answer to (a) be affected if you found out that the company had paid £10,000 in dividends; that additional shares with a value of £20,000 had been issued; and that noncurrent assets had been revalued upwards by £30,000?

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Simplified 16 statement of financial position of the Windysand Company as at 31 December Year 1 Year 2 Non-current assets 320,000 350,000 Current assets 5,000 45,000 Total assets 325,000 395,000 Non-current liabilities 222,000 202,000 Current liabilities 3,000 10,000 225,000 212,000 Equity 100,000 183,000 325,000 395,000