Question 2 (35 marks) Marathon Limited has been operating as a company selling sports shoes, sports wears, and other accessories for some years. The following list of balances has been extracted from the company's ledger as of March 31, 2021. S Advertising Bank interest expenses Cash in hand Creditors Debtors Electricity paid Fixtures and fittings at cost Accumulated depreciation - fixtures and fittings at April 1, 2020 Office equipment at cost Accumulated depreciation - office equipment at April 1, 2020 Postages and stationery Purchases Rent, rates and insurance Retained earnings at April 1, 2020 Salaries and wages Sales Share capital Stock at April 1, 2020 5-year bank loan at an interest rate of 20% per annum 91,728 3,850 3,250 33,880 31,500 21,000 63,000 6,300 56,000 2,800 16,842 280,000 52,500 22,400 91,910 455,000 175,000 18,800 35,000 The following additional information as of March 31, 2021, includes: 1. Stock as of March 31, 2021, was valued at $135,000. 2. The company received an electricity bill of $1,050 for January 2021. However, this electricity bill has not been settled until June 2021. 3. Rates were paid in advance for April to June 2021 $4,200. 4. The company will pay sales commissions of 5% on sales of the year in May 2021. 5. A customer has failed to settle the payment - $5,250 for a long time. It was deemed as bad debts as of March 31, 2021. 6. Annual bank loan interest has not been included in bank interest expenses for the year. 7. Depreciation of fixtures and fittings: 20% per annum on the straight-line basis. 8. Depreciation of office equipment: 10% per annum on the reducing balance basis. Required: (a) Prepare the Profit And Lo for the year ended March Balance Sheet as of that date. (b) Give comments on the above information given. 2021, and the (25 marks) (10 marks) Entrepreneurial And Financial Strategies In Sports And Recreation - Assignment 3 (2021) 3 Page