Unicorn Ltd, a manufacturing company, commenced operations on 1 July 2014 by issuing 308 200 $5.00 shares, payable in full on application on a first-come, first-served basis. By 15 August 2014 the shares were fully subscribed and duly allotted. There were no share issue costs.For the year ending 30 June 2016, the company recorded the following aggregate transactions: $Sales 5 756 000Interest income 6 000Cost of Sales 4 287 000Sundry income 13 000Employee benefit expenses - Admin 144 000Depreciation expense- Admin 42 000Distribution Expenses 86 000Insurance expense 37 000Rental expenses - office 23 000Sales and marketing 820 000Doubtful debts expense 6 000Interest expense 44 000Other borrowing expenses 4 000Income tax expense 85 000The following additional information was noted during the preparation of financial statements for the year ended 30 June 2016:(a) There were no share issues during the year ended 30 June 2015.(b) On 1 July 2015 30 000 fully paid shares were issued for $150 000.(c) A dividend of $150 000 was declared and paid during the 2016 financial year and a final dividend for 2016 of $101 460 was proposed but not recognised in the financial statements. (d) The balances of the land revaluation reserve and the investments revaluation reserve at 30 June 2015 were $15 000 credit and $35 000 credit respectively.(e) The following revaluations were recognised during the year ended 30 June 2016: land revalued upward by $50 000 (related income tax $15 000) by Valuations R US Pty Ltd and available-for-sale investments were revalued upward by $10 000 (related income tax $3000).(f) The available-for-sale investments are held as part of a long-term investment strategy.(g) $40 000 of bank loans is repayable within 1 year.(h) $110 000 of other loans is repayable within 1 year.(i) The provision for employee benefits includes $58 000 payable within 1 year.(j) The warranty provision is in respect of a 12-month warranty given on certain goods sold.(k) Other expenses included payments to the auditors Auditcheck for audit services of $15 000 and an amount of $3 500 for taxation services.(l) Unicorn Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement.(m) Unicorn Ltd measures inventory at the lower of cost and net realizable value and buildings, plant and equipment using the cost model. Summarised account balances are provided below: Year-end balances, 30 June 2016 $Cash on hand 4 000Cash on deposit, at call 100 000Accounts receivable - trade 450 000Allowance for doubtful debts/ impairment 14 000Other debtors 93 000Raw Materials inventories, 30 June 2016 188 000Finished goods inventories, 30 June 2016 714 000Land 102 000Buildings 155 000Accumulated depreciation – buildings 36 000Plant and equipment 1 260 000Accumulated depreciation – plant and equipment 564 000Patents 48 000Accumulated amortisation of patent 3 000Goodwill 870 000Listed investments (available for sale) 225 000Bank loans 66 000Other loans 570 000Accounts payable- trade 510 000Provision for employee benefits 93 000Provision for warranty 37 000Current tax liability 25 000Deferred tax liability 135 000Retained earnings, 30 June 2015 326 000Investments revaluation reserve 42 000Share Capital 1 691 000Dividends paid 150 000Land revaluation reserve 50 000 Required:For the year ending 30 June, 2016, 1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for Unicorn Ltd; (4 Marks)2. Prepare a statement of comprehensive income for Unicorn Ltd in accordance with the requirements of AASB 101. Unicorn Ltd uses the single statement format for the statement of comprehensive income and classifies expenses by function within the statement; (16 marks)3. Prepare a statement of changes in equity for Unicorn Ltd in accordance with the requirements of AASB 101; (12 marks)4. Prepare a statement of financial position for Unicorn Ltd in accordance with AASB 101. Use the current/non-current presentation format; (12 marks)5. Prepare appropriate notes to the accounts. (You do not need to prepare notes related to income taxes. Include the following note as note 1. You may optionally add accounting policies to this note): (16 marks)."1. Summary of significant accounting policiesBasis of accountingThe financial report is a general purpose financial report which has been prepared on the historical cost basis, except where stated otherwise.Statement of ComplianceThe financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations. Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards" PART BThe comparative statement of financial position and statement of profit or loss of Griffin Ltd for the year ended 30 June 2016 are as follows:Griffin Ltd Statement of Financial Positionas at 30 June 2016 2016 2015Current assets Cash at bank $ 114 000 $ 70 000 Cash deposits (30-day) 80 000 30 000 Accounts receivable 82 000 75 000 Allowance for doubtful debts (9 000) (5 000)Interest receivable 4 000 3 000 Inventories 226 000 200 000 Prepayments 3 000 7 000 500 000 380 000 Non-current assets Land 120 000 100 000 Plant 700 000 600 000 Accumulated depreciation (180 000) (140 000)Investment in associate 92 000 80 000 Brand names 90 000 120 000 822 000 760 000 Total assets $ 1322 000 $ 1 140 000Current liabilities Accounts payable $ 196 000 $ 180 000 Interest payable 18 000 12 000 Current tax payable 42 000 40 000 256 000 232 000 Non-current liabilities Borrowings 138 000 98 000 Deferred tax liability 40 000 35 000 Provision for employee benefits 33 000 20 000 211 000 153 000 Total liabilities 467 000 385 000 Equity Share capital 530 000 500 000 Retained earnings 325 000 255 000 855 000 755 000 Total liabilities and equity $ 1 322 000 $ 1140 000  Griffin Ltd Statement of Profit or Loss for the year ended 30 June 2016SalesCost of sales $ 1  980  000 (1  230  000) Gross profitInterestShare of profits of associateGain on sale of plant 750  000 2  000 20  000 8  000 Total income 780  000 ExpensesSalaries and wagesDepreciationDiscount allowedDoubtful debtsInterestOther (including impairment of brand names $30  000) $ 452  000 50  000 8  000 6  000 21  000 86  000 623  000 Profit before taxIncome tax expense 157  000 (47  000) Profit for the year 110  000 Additional information in relation to the year ended 30 June 2016:a) There were no cash sales during the year.b) Bad debts written off during the year amounted to $2 000c) 30-day cash deposits are used in the course of the daily cash management of the company d) There have been no asset revaluations during the yeare) Disposals of plant comprised: original cost $50 000, accumulated depreciation $10 000f) Movements in "Investment in associate" account comprised $20 000 share of profit of associate less $8 000 dividend receivedg) Income tax expense comprises current tax payable component of $42 000 and a deferred tax liability component of $5 000 Required1. Prepare working papers showing calculations to determine cash flows from operating, investing and financing activities required to be disclosed under AASB 107 using the direct method. Use of T accounts or equations is acceptable; (10 Marks)2. Prepare the Statement of Cash Flows for Griffin Ltd for the year ending 30 June 2016 in accordance with AASB 107. Comparatives are not required (10 marks) 3. Provide a reconciliation of net profit after tax with net cash provided by operating activities in accordance with AASB 1054. (8 marks) APPENDIX A: PRESENTATION REQUIREMENTS (Departures attract a penalty)1. The hard copy of the assignment must be handed in to the lecturer in class. It is also required to be submitted through Turnitin by the due date; 2. It is worth 25% of the final grade but will be marked out of 100;3. The assignment will be marked on the basis of a requirement of "suitable for publication", that is, the relevant statements/notes comprise an external report;4. The assignment must be performed individually. 5. You are to employ an aggregated format whenever appropriate and consistent with provision of minimum line items prescribed in AASB101; 6. The suggested word limit for Part A is 500 words in total.7. The financial statements and the notes are to be typed in 12 point font; 8. You are not to use specialized accounting software packages, such as are employed by professional accounting firms, to produce your financial reports;9. You are to apply the "cost of sales" method to the classification of expenses in the income statement (see AASB101 paras 97-105);10. You are directed to use the current/non-current format for the statement of financial position (balance sheet) and supply a "net assets" line item;11. The notes are to be simplified equivalences to published reports; that means a list of constituent components of a given line item with their respective dollar amounts, not footnotes; for Part B there is one set of notes to cover all statements, numbered sequentially from 1 (as supplied);12. Your hard copy assignment is to be collated in the following order: Coversheet (optional for electronic version but mandatory, signed with ticked module and Turnitin ID, for hard copy), followed by Part A (questions 1 andS