The trial balance extracted from the books of Tailor Times Ltd at 31 December 2016 was as follows:

You are given the following additional information:
(1) The authorized and issued share capital is divided into 400,000 ordinary shares of 50p each.
(2) Inventory at 31 December 2016, £94,300.
(3) Wages and salaries due at 31 December 2016 amounted to £1,800.
(4) Business rates paid in advance at 31 December 2016 amounted to £700.
(5) A dividend of £20,000 is proposed for 2016.
(6) The allowance for doubtful debts is to be increased to £1,500.
(7) A depreciation charge is to be made on freehold premises of £25,000 and machinery at the rate of 25 per cent per annum on cost.

Required:
A statement of profit or loss for 2016 and a statement of financial position as at 31 December 2016.

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Share capital 200,000 Retained profits 31 December 2015 27,500 Freehold premises at cost 271,000 Provision for depreciation on freehold premises at 31 December 2015 54,000 Machinery at cost 84,000 Provision for depreciation on machinery account as at 31 December 2015 21,000 Purchases 563,700 Sales 925,300 General expenses 14,600 Wages and salaries 179,400 Business rates 6,100 Electricity 4,800 Bad debts 1,400 Allowance for doubtful debts at 31 December 2015 1,200 Accounts receivable 74,200 Accounts payable 68,300 Inventory at 31 December 2015 81,900 Bank balance 16,200 1,297,300 1,297,300