& Cut Font Name - Font Size - TabStop Wrap Text US Overline Insert Column "Delete Column Paste s Copy B i Merge Cell Conditional Formatting Remove Conditional Formats 3. Insert Row 3. Delete Row CLICK HERE TO SAVE YOUR WORK B D H N E F 1 J M 112 113 b) Condensed net income and cash flow information for a company at four different points in time (A, B, C and D) are presented below. 114 Point in Time 115 A B C D 116 Net income $ (45,000) $ 20,000 $ 185,000 $ (9,000) 117 Net cash provided (used) by operating activities (84,000) 60,000 200,000 (18,000) 118 Net cash provided (used) by investing activities (120,000) 50,000 55,000 (65,000) 119 Net cash provided (used) by financing ctivities 100,000 (130,000 75,000) 160,000 120 121 Instructions 122 For each point in time, state whether the company is most likely in the introductory phase, growth phase, maturity phase, or decline phase. In each case, 123 explain your choice (8 marks). 124 125 126 127 128 129 130 131 132 Sheet1 New CLICK HERE TO SAVE YOUR WORK A B C D E G H 59 Question 2 - Statement of cash flows (17 marks) 60 a) Lime Inc.'s income statement is presented below: 61 LIME INC. 62 Income Statement 63 Year Ended December 31, 2019 64 65 Net sales $ 300,000 66 Cost of goods sold 210,000 67 Gross profit 90,000 68 Operating expenses 70,000 69 Income from operations 20,000 70 Other revenues and expenses 71 Gain on disposal of equipment $ 6,000 72 Interest expense (3.500) 2,500 73 17,500 Income before income tax 3,500 74 Income tax expense $ 14,000 75 Net income 76 77 Selected information from Lime Inc.'s statement of financial position at December 31 follows: 2019 2018 78 $ 25,000 $ 32,000 79 Accounts receivable gecel J Insert Row Delete Row Remov CLICK HERE TO SAVE YOUR WORK A B D E F G H 73 Income before income tax 17,500 74 Income tax expense 3,500 75 Net income $ 14,000 76 77 Selected information from Lime Inc.'s statement of financial position at December 31 follows: 78 2019 2018 79 Accounts receivable $ 25,000 $32,000 80 Inventory 38,000 30,000 81 Prepaid expenses 3,500 2,500 82 Accounts payable 19,000 10,000 83 Interest payable 2,800 5,000 84 Bank loan payable - current portion 10,000 5,000 85 Bank loan payable - non-current portion 40,000 15,000 86 87 Additional information 88 Operating expenses include $10,000 of depreciation expense. 89 90 Instruction 91 Prepare the operating activities section of the statement of cash flows, using the indirect method (9 marks). 92 93 Sheet1 New 15 & Cut Font Name - Font Size - TabStop Wrap Text US Overline Insert Column "Delete Column Paste s Copy B i Merge Cell Conditional Formatting Remove Conditional Formats 3. Insert Row 3. Delete Row CLICK HERE TO SAVE YOUR WORK B D H N E F 1 J M 112 113 b) Condensed net income and cash flow information for a company at four different points in time (A, B, C and D) are presented below. 114 Point in Time 115 A B C D 116 Net income $ (45,000) $ 20,000 $ 185,000 $ (9,000) 117 Net cash provided (used) by operating activities (84,000) 60,000 200,000 (18,000) 118 Net cash provided (used) by investing activities (120,000) 50,000 55,000 (65,000) 119 Net cash provided (used) by financing ctivities 100,000 (130,000 75,000) 160,000 120 121 Instructions 122 For each point in time, state whether the company is most likely in the introductory phase, growth phase, maturity phase, or decline phase. In each case, 123 explain your choice (8 marks). 124 125 126 127 128 129 130 131 132 Sheet1 New CLICK HERE TO SAVE YOUR WORK A B C D E G H 59 Question 2 - Statement of cash flows (17 marks) 60 a) Lime Inc.'s income statement is presented below: 61 LIME INC. 62 Income Statement 63 Year Ended December 31, 2019 64 65 Net sales $ 300,000 66 Cost of goods sold 210,000 67 Gross profit 90,000 68 Operating expenses 70,000 69 Income from operations 20,000 70 Other revenues and expenses 71 Gain on disposal of equipment $ 6,000 72 Interest expense (3.500) 2,500 73 17,500 Income before income tax 3,500 74 Income tax expense $ 14,000 75 Net income 76 77 Selected information from Lime Inc.'s statement of financial position at December 31 follows: 2019 2018 78 $ 25,000 $ 32,000 79 Accounts receivable gecel J Insert Row Delete Row Remov CLICK HERE TO SAVE YOUR WORK A B D E F G H 73 Income before income tax 17,500 74 Income tax expense 3,500 75 Net income $ 14,000 76 77 Selected information from Lime Inc.'s statement of financial position at December 31 follows: 78 2019 2018 79 Accounts receivable $ 25,000 $32,000 80 Inventory 38,000 30,000 81 Prepaid expenses 3,500 2,500 82 Accounts payable 19,000 10,000 83 Interest payable 2,800 5,000 84 Bank loan payable - current portion 10,000 5,000 85 Bank loan payable - non-current portion 40,000 15,000 86 87 Additional information 88 Operating expenses include $10,000 of depreciation expense. 89 90 Instruction 91 Prepare the operating activities section of the statement of cash flows, using the indirect method (9 marks). 92 93 Sheet1 New 15