XYZ Pty Ltd is a company selling computers and accessories

XYZ Pty Ltd is a company selling computers and accessories to the clients. You are the accountant of XYZ Pty Ltd, and required to prepare the Balance Sheet and Income Statement for the year ended 30 June 2015. You are given the Balance Sheet and Income Statement for the year ended 30 June 2014 as follows:

Additional information:

The property, plant and equipment were purchased on 1 July 2013 with the cost of $40,000. The useful life was expected as 5 years. Straight line method was used.

The perpetual method is used for inventory.

Based on prior experience, XYZ Pty Ltd’s bad debts expense is normally 2% of net credit sales for the current year.

Under taxation legislation, revenue will be taxable when received.

The taxation depreciation for PPE is $9,000.

Under taxation legislation, no deduction is allowed for entertainment expenditure.

Under taxation legislation, no deduction is allowed for bad debts until they have been written off.

The company income tax rate is 30%.

Ignoring GST impact.