4.7 Presented below is a draft set of financial statements for Chips Limited. ASSETS Chips Limited Income statement for the year ended 30 June 2010 Revenue Cost of sales Gross profit Depreciation Other operating costs Operating profit Interest payable Profit before taxation Taxation Profit for the year 000 1,850 (1,040) 810 (220) (375) 215 (35) 180 (60) 120 Statement of financial position as at 30 June 2010 Cost Depreciation 000 000 000 Non-current assets Property, plant and equipment Buildings Plant and equipment Motor vehicles Current assets Inventories Trade receivables Cash at bank 800 (112) 688 650 (367) 283 102 (53) 49 1,552 (532) 1,020 950 420 16 1,386 2,406 Total assets EQUITY AND LIABILITIES Equity Ordinary shares of 1, fully paid Reserves at beginning of the year 800 248 Profit for the year 120 1,168 Non-current liabilities Borrowings (secured 10% loan notes) 700 Current liabilities Trade payables 361 Other payables 117 Taxation 60 538 Total equity and liabilities 2,406 The following additional information is available: 1 Purchase invoices for goods received on 29 June 2010 amounting to 23,000 have not been included. This means that the cost of sales figure in the income statement has been understated. 2 A motor vehicle costing 8,000 with depreciation amounting to 5,000 was sold on 30 June 2010 for 2,000, paid by cheque. This transaction has not been included in the company's records. 3 No depreciation on motor vehicles has been charged. The annual rate is 20 per cent of cost at the year end. 4 A sale on credit for 16,000 made on 1 July 2010 has been included in the financial state- ments in error. The cost of sales figure is correct in respect of this item. 5 A half-yearly payment of interest on the secured loan due on 30 June 2010 has not been paid. 6 The tax charge should be 30 per cent of the reported profit before taxation. Assume that it is payable, in full, shortly after the year end. Required: Prepare a revised set of financial statements incorporating the additional information in 1 to 6 above. (Work to the nearest 1,000.)