attached

Solution 1:
A. The financial statements of the entity are as below:
    Income Statement
    Particulars
    Amount($)
    Income
     
    Income from building services
     5,50,000
    Total (a)
     5,50,000
    Expenses
     
    Wages
     1,50,000
    Building supplies used
     3,10,000
    Motor vehicle expenses
     5,600
    Electricity and telephone
     4,000
    Total (b)
     4,69,600
    Net Income of the entity (a-b)
     80,400
    
Balance sheet
    Particulars
    Amount($)
    Particulars
    Amount($)
    Capital (Bal. item)
     94,100
    Assets
     
    Retained earnings (surplus balance of income statement)
     80,400
    Cash balance
     500
    Less: Cash withdrawal
     -5,700
    Bank balance
     3,800
    
    
    Trade receivable
     80,000
    Liabilities
     
    Building supplies
     18,000
    Wages accrued
     3,500
    Equipment a/c
     68,000
    Trade payables
     30,000
    Motor vehicle
     32,000
     Total
     2,02,300
    Total 
     2,02,300
B. Detailed analysis of statement of financial position and performance from the vendor’s view point:
The financial statement is that the vital statement that is employed by the varied users to research the money position of the corporate. It's utilized by the varied users like creditors, suppliers, shareholders, investors and lots of additional for his or her higher cognitive process purpose and on such call they decide their relationship with the corporate. Similarly in the given case the provider of the fabric desires to undertake the choice of associating with the corporate concerning the availability of materials and on that premise of the financial statement decision of the supplier are going to be undertaken. The provider of the fabric will use the money statements of entity for the choice to provide supply to the organization and...