KINDLY GIVE STEP BY STEP EXPLANATIONS

1. (31 marks) Condensed financial data of Primavera Corporation appear below. PRIMAVERA CORPORATION Comparative Statements of Financial Position December 31 Assets 2018 Cash $ 34,000 Accounts receivable. Inventory. Prepaid expenses. 2,500 Long-term investments D Property, plant, and equipment 224,000 Accumulated depreciation (50,000) Total assets. E Liabilities and Shareholders' Equity Accounts payable .. S F Acerued expenses payable. 10,000 Bonds payable. 130,000 Common shares. 50,000 Retained earnings.. 136,000 Total liabilities and shareholders' equity $364,000 2017 $ 18,000 32,000 70,000 10,000 200,000 (40,000) S292,000 $ 34,000 12,000 100,000 75,000 G S292,000 PRIMAVERA CORPORATION Income Statement For the Year Ended December 31, 2018 Sales $500,000 Expenses Cost of goods sold. $290,000 Operating expenses (excluding depreciation). H Depreciation expense Interest expense... 9,000 Loss on sale of property, plant, and equipment.. 408,000 Income before income tax. 92,000 Income tax expense. 17.000 Net income Additional information regarding fiscal 2018: 1. New property, plant, and equipment costing $33,000 was purchased for cash. 2. Old property, plant, and equipment costing $9,000 was scrapped when the carrying amount was $4,000. 3. A cash dividend of $10,000 was declared and paid during the year. The bonds were originally issued at face value. 4. Required: a. Solve for the missing amount in the Statement of Financial Position and Statement of Income (A to K) (11 marks) (You will be marked based on accuracy.) b. Prepare Statement of Cash Flows for Primavera Corporation. Use the indirect method to prepare the operating activities section. (20 marks) (You will be marked based on overall format and presentation of the statement.)