$($iv$)$ The provision for bad debts should be adjusted to $5\%$ of the closing trade receivables

$($v$)$ Depreciation of non$-$current assets is to be provided for as follows:

Premises: $,5\%$ per annum on cost $($Straight Line$)$

Equipment: $,20\%$ per annum on cost $($Straight Line$)$

Requirement:

$($a$)$ Prepare the Income Statement for Mikey for the year ending $31$ December $2023.$

$($b$)$ Prepare a Statement of Financial Position as at $31$ December $2023.$

$($c$)$ Identify four different user groups of financial accounting information and briefly explain

why cach group would be interested in such information, $\sqrt[\phantom{2}]{?}$QUESTION $1$

The following trial balance was extracted from the books of Mikey, a sole trader, as at $31$ December

$2023$:

The following additional information is available and has not been included in the Trial Balance:

$($i$)$ Closing inventory at $\frac{31}{12}\frac{?}{23}$ has been valued at $12,000$

$($ii$)$ Legal costs prepaid at year end: $500$

$($iii$)$ Wages & salaries expenses due at $31/12/23$: $3,000$