KLM, Inc. 2009 Statement of comprehensive income Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Dividends paid Addition to retained earnings $3,685 $3.180 $104 $401 $25 $376 $128 $248 $60 S188 KLM Corporation Statement of financial positions as of December 31, 2008 and 2009 Cash Accounts rec. Inventory Current assets Net fixed assets 2008 2009 2008 2009 $ 520 S 601 Accounts payable $ 621 S 704 $ 235 $ 219 Notes payable $ 333 $ 272 $ 964 $ 799 Current liabilities $ 954 S. 976 $1.719 $1.619 Long-term debt $ 350 $60 $ 890 $ 930 Common stock $ 800 $ 820 Retained earnings $ 505 $ 693 $2,609 $2,549 Total liabilities and Owner's equity $2,609 $2.549 Total assets a)Calculate CFFA according to both approaches. Show all the necessary steps with the calculations (50 marks) b) Discuss in detail the concepts of capital gains, CCA recapture and terminal loss in relation to the concept of depreciation and taxes (50 marks) KLM, Inc. 2009 Statement of comprehensive income Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Dividends paid Addition to retained earnings $3,685 $3.180 $104 $401 $25 $376 $128 $248 $60 S188 KLM Corporation Statement of financial positions as of December 31, 2008 and 2009 Cash Accounts rec. Inventory Current assets Net fixed assets 2008 2009 2008 2009 $ 520 S 601 Accounts payable $ 621 S 704 $ 235 $ 219 Notes payable $ 333 $ 272 $ 964 $ 799 Current liabilities $ 954 S. 976 $1.719 $1.619 Long-term debt $ 350 $60 $ 890 $ 930 Common stock $ 800 $ 820 Retained earnings $ 505 $ 693 $2,609 $2,549 Total liabilities and Owner's equity $2,609 $2.549 Total assets a)Calculate CFFA according to both approaches. Show all the necessary steps with the calculations (50 marks) b) Discuss in detail the concepts of capital gains, CCA recapture and terminal loss in relation to the concept of depreciation and taxes (50 marks)