Help solve in English

Here is the solution to your questions in English:

a) The two core characteristics of useful financial information are:

• Relevance: Financial information is relevant if it is capable of influencing the decisions of users. This means it can provide predictive value and confirmatory value to users.
• Faithful Representation: Financial information faithfully represents the economic phenomena it purports to represent. This means the information is complete, neutral, and free from error.

b)
Upendo Traders
Statement of Profit or Loss for the year ended 31 December 2025

$$\begin{array}{lrr} \text{Details} & \text{Sh. '000'} & \text{Sh. '000'} \\ \hline \text{Sales} & & 480,000 \\ \text{Less: Cost of Sales} & & \\ \quad \text{Opening Inventory (1 Jan 2025)} & 42,000 & \\ \quad \text{Purchases (240,000 - 5,000)} & 235,000 & \\ \quad \text{Carriage Inwards (8,000 - 1,200)} & 6,800 & \\ \quad \text{Goods Available for Sale} & 283,800 & \\ \quad \text{Less: Closing Inventory (31 Dec 2025)} & (36,000) & \\ \quad \text{Cost of Sales} & & (247,800) \\ \text{Gross Profit} & & 232,200 \\ \text{Add: Other Income} & & \\ \quad \text{Discounts Received} & & 7,000 \\ \text{Total Income} & & 239,200 \\ \text{Less: Operating Expenses} & & \\ \quad \text{Salaries and Wages (54,000 + 6,000)} & 60,000 & \\ \quad \text{Lighting and Heating (12,000 - 2,000)} & 10,000 & \\ \quad \text{General Expenses (18,000 - 3,000)} & 15,000 & \\ \quad \text{Depreciation on Furniture (10\% of 91,200)} & 9,120 & \\ \quad \text{Allowance for Credit Losses (5\% of 60,000)} & 3,000 & \\ \quad \text{Total Operating Expenses} & & (97,120) \\ \text{Net Profit for the Year} & & \boxed{\text{Sh. }\textbf{142,080,000}} \\ \hline \end{array}$$

Upendo Traders
Statement of Financial Position as at 31 December 2025

$$\begin{array}{lrr} \text{Details} & \text{Sh. '000'} & \text{Sh. '000'} \\ \hline \textbf{Non-Current Assets} & & \\ \quad \text{Premises} & 180,000 & \\ \quad \text{Furniture (90,000 + 1,200)} & 91,200 & \\ \quad \text{Less: Accumulated Depreciation} & (9,120) & \\ \quad \text{Furniture (Net Book Value)} & & 82,080 \\ \text{Total Non-Current Assets} & & 262,080 \\ \textbf{Current Assets} & & \\ \quad \text{Closing Inventory (31 Dec 2025)} & 36,000 & \\ \quad \text{Trade Receivables (60,000 - 3,000)} & 57,000 & \\ \quad \text{Bank} & 27,000 & \\ \quad \text{Lighting and Heating Prepaid} & 2,000 & \\ \text{Total Current Assets} & & 122,000 \\ \textbf{Total Assets} & & \boxed{\text{Sh. }\textbf{384,080,000}} \\ \hline \textbf{Equity and Liabilities} & & \\ \textbf{Equity} & & \\ \quad \text{Capital (1 Jan 2025)} & 250,000 & \\ \quad \text{Add: Net Profit for the Year} & 142,080 & \\ \quad \text{Less: Drawings (36,000 + 3,000 + 5,000)} & (44,000) & \\ \text{Capital (31 Dec 2025)} & & 348,080 \\ \textbf{Current Liabilities} & & \\ \quad \text{Trade Payables} & 30,000 & \\ \quad \text{Salaries and Wages Accrued} & 6,000 & \\ \text{Total Current Liabilities} & & 36,000 \\ \textbf{Total Equity and Liabilities} & & \boxed{\text{Sh. }\textbf{384,080,000}} \\ \hline \end{array}$$