9607 691 Zepra Gifts has extracted the following information from its records, following the close of its books on 31st December, 2018: Account RM Wages Payable Utilities expense 5,856 Cost of Salese 17,280 Dividends received 6,9124 Interest received 1,2004 Administrative Expenses 2,074 Interest expenses Accumulated depreciation - Building 17,280 Depreciation expense, Building 3,4564 Wages and salaries 10,368 Cash on hande 6,9124 Inventories 11,7504 Building 48,38440 Salese 41,4724 Accounts Payable 13,824 Capital 7,8434 Loan (due in 5 years) 17,280 Required: a. Prepare the relevant income statement and balance sheet, based on the information provided above, for Zepra Gifts. b. Sandra, ZepraGift's owner, mentions that she does not use the balance sheet to assess the performance of ZepraGift because this statement shows a snapshot of the business at a certain point in time and does not show the flow of business over time. She likens this situation to trying to understand a movie story based on just specific scenes released for promoting the product, which may not reflect the overall product. She asks for your opinion on this view. Discuss Sandra's perspective. You may agree or disagree with her view, but you must justify your stance based on any one item shown on the balance sheet. Start typing here c. You are studying some annual reports of listed firms, and note that a particular firm has recorded positive net cash flows from operating activities for a certain year and negative net cash flows from operations the following year. Your classmate mentions that this indicates bad news and the firm is unlikely to survive over the long term, and it should cease operations before it loses more money. Consider an example where this view could Page 5 of 9 - be supported, as well as another example where this view may not hold, and discuss whether you agree with your classmate's view. Start typing here (11 + 5 + 5 = 21 marks)