Prepare an income statement for the year ended 30th June 2014 given the following account balances. Note: Some accounts may not be relevant.

Cash $3,000
Sales $280,000
Salary and wages $37,000
Accounts receivable $15,000
Loan interest $4,000
Insurance $2,000
Loan $40,000
Telephone and postage $1,500
Rent and rates $12,400
Cost of sales $160,000
Inventory $11,000
Accounts payable $9,100
Heat and light $3,700
Motor vehicles $32,000
Equipment repairs $1,600
Depreciation- motor vehicles $4,500
Motor vehicle running costs $1,700
Depreciation-equipment $3,200
Royalties received $1,700
Accounting and audit $3,400
Bad and doubtful debts $800