This question needs to be answered for studying purposes. It is not intended to be submitted for grading.

Question:

Pisces plc produced the following statement of financial position (balance sheet) and income statement at the end of the third year of trading:

Income statement for the third year Em Sales revenue 231.5 Cost of sales (143.2) Gross profit 88.3 Wages (43.5) Depreciation of machinery and equipment (14.8) R&D costs (40.0) Allowance for trade receivables (10.5) Operating loss (20.5) Income from investments 0.6 (19.9 ) Interest payable (0.8) Ordinary loss before taxation (20.7) Restructuring costs (6.0 Loss before taxation (26.7) Tax Loss for the year (26.7)Income statement for the third year Em Sales revenue 231.5 Cost of sales (143.2) Gross profit 88.3 Wages (43.5) Depreciation of machinery and equipment (14.8) R&D costs (40.0) Allowance for trade receivables (10.5) Operating loss (20.5) Income from investments 0.6 (19.9 ) Interest payable (0.8) Ordinary loss before taxation (20.7) Restructuring costs (6.0 Loss before taxation (26.7) Tax Loss for the year (26.7)Statement of financial position as at the end of the third year Em ASSETS Non-current assets Property 40.0 Machinery and equipment 80.0 Motor vans 18.6 Marketable investments 9.0 147.6 Current assets Inventories 45.8 Trade receivables 64.6 Cash 1.0 111.4 Total assets 259.0 EQUITY AND LIABILITIES Equity Share capital 80.0 Reserves 36.5 116.5 Non-current liabilities Loan notes 80.0 Current liabilities Trade payables 62.5 Total equity and liabilities 259.0Statement of financial position as at the end of the third year Em ASSETS Non-current assets Property 40.0 Machinery and equipment 80.0 Motor vans 18.6 Marketable investments 9.0 147.6 Current assets Inventories 45.8 Trade receivables 64.6 Cash 1.0 111.4 Total assets 259.0 EQUITY AND LIABILITIES Equity Share capital 80.0 Reserves 36.5 116.5 Non-current liabilities Loan notes 80.0 Current liabilities Trade payables 62.5 Total equity and liabilities 259.0