Rose Limited operates a small chain of retail shops that sell high-quality teas and coffees….

Rose Limited operates a small chain of retail shops that sell high-quality teas and coffees. Approximately half of sales are on credit. Abbreviated and unaudited financial statements are given below:

Since the unaudited financial statements for Rose Limited were prepared, the following information has become available:

1 An additional £74,000 of depreciation should have been charged on fixtures and fittings.

2 Invoices for credit sales on 31 March 2006 amounting to £34,000 have not been included; cost of sales is not affected.

3 Bad debts should be provided at a level of 2 per cent of receivables at the year end.

4 Inventories, which had been purchased for £2,000, have been damaged and are unsaleable. This is not reflected in the financial statements.

5 Fixtures and fittings to the value of £16,000 were delivered just before 31 March 2006, but these assets were not included in the financial statements and the purchase invoice had not been processed.

6 Wages for Saturday-only staff, amounting to £1,000, have not been paid for the final Saturday of the year. This is not reflected in the financial statements.

7 Tax is payable at 30 per cent of net profit after tax. Assume that it is payable shortly after the year-end.

Required: Prepare revised financial statements for Rose Limited for the year ended 31 March 2006, incorporating the information in 1–7 above. Note: Work to the nearest £1,000.