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Dolente Ltd is a small company which designs, manufactures and sells innovative electronic instruments. The directors of the company have discussed the financial statements prepared for the year ended 31 March 2020 and have made the following remarks. "We are surprised to see that we have a loss for the year as our bank balance seems to be healthy and has increased from the 2019 figure" The following are the financial statements of Dolente Ltd for the two years ended 31 March 2020. Statement of Financial Position as at 31-March E000 00 600 g000 2020 2019 862 996 948 Trade debtors 02 306 1.144 214 1850 1 Total Assets Croditors Ealling due within I year Croditors Ealling due after 1 ycar 462 462 426 Equity and reserves Ordinary shares of t1 each Share premium Retained carnings Total Liabilnies and Equity 214 1998 Income Statement for the year ended 31 March Cost of sales Gross proft 52 Operating profie Intqrest payable Excopisional items Less before taxation (4 Less for the year 14 The following further information is available: (1) Tangible non-current assets: Cost Accumalated Net As at 1 Apeil 2019 1242 422 Additions, at cost (26 (34 Depreciation for the year As at 31" March 2020 1346 The assets were sold for cash proceeds of 10,000. Any profit or loss arising is included in the operating profit for the year. (2) Intangible non-current assets: These are patents on innovative electronic instruments As at 1Apeil 2019 128 Amortiration (n operating profit) (14) Exceptional write dowm As at 31 March 2020 134

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