kindly have a look at the following questions as follows (4 and 5)
QUESTION 3 The income statement of Noah's Ark is shown below. Noah's Ark Income Statement For the year ended November 30, 2018 (RM) (RM) Sale 6,800,000 Cost of goods sold Beginning mventory 2,000,000 Purchases 4.300.000 Goods available for sale 6,300.000 Ending inventory 1.400.000 Cost of goods sold 4.900.000 Gross profit 1,900,000 Operating expenses Selling expenses 450,000 Administrative expenses 600.000 1.050.000 Net income 850.000 Additional information: 1. Account receivable decreased RM 230,000 during the year. 2. Prepaid expenses increased RM 130,000 during the year. 3. Account payable to suppliers of merchandise decreased RM 200,000 during the year. . Accrued expenses payable decreased RM 100,000 during the year. 5. Administrative expenses include depreciation expense of RM 90,000. Instruction: Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2018, for Noah's Ark using the indirect method. QUESTION 4 Data for Noah's Ark Company are presented in QUESTION 3. Instruction: Prepare the operating activities section of the statement of cash flows using the direct method.QUESTION 5 & 6 The financial statements of Ernest Banks Company appear below: Ernest Banks Company Comparative Balance Sheet December 31 Assets 2018 2017 (RM) (RM) Cash 23,000 13,000 Accounts receivable 24,000 33,000 Merchandise inventory 20,000 27,000 Prepaid expenses 20.000 13,000 Land 40.000 40.000 Property, plant and equipment 200,000 225,000 Less Accumulated depreciation (50.000) (67.500) Total 277.000 283.500 Liabilities and Stockholder's equity Account payable 9.000 18,500 Accrued expenses payable 9.500 7.500 Interest payable 1,000 1,500 Income taxes payable 3.000 2,000 Bonds payable 50.000 80,000 Common stock 123,000 105,000 Retained earnings 81.500 69.000 Total 277.000 283.500 Ernest Banks Company Income Statement For the year ended December 31, 2018 (RM) (RM) Revenues Sales 600,000 Gain on sale on plant assets 2,500 602,500 Less: Expense Cost of goods sold 500,000 Operating expenses (excluding depreciation) 60.000 Depreciation expense 7,500 Interest expense 5,000 Income tax expense 9.000 581,500 Net income 21.000Additional information: 1. Plant assets were sold at a sales price of RM 62,500. 2. Additional equipment was purchased at a cost of RM 60,000. 3. Dividends of RM 8,500 were paid. 4. All sales and purchases were on account. 5. Bonds were redeemed at face value. 6. Additional shares of stock were issued for cash. Instruction: Prepare a statement of cash flows for Ernest Banks Company for the year ended December 31,2018 using the indirect method. QUESTION 6 (Based on Question 5 info) Data for Ernest Banks Company is presented in QUESTION 5. Further analysis reveals the following. 1. Account payable relates to merchandise creditors. 2. All operating expenses, except depreciation expense, were paid in cash. Instruction: Prepare statement of cash flows for Ernest Banks Company for the year ended December 31, 2018 using the direct method
