Life Sdn Bhd is in the process of liquidating and going out of business. The firm's balance sheet shows RM45,600 in cash, accounts receivable of RM228,400, inventory totalling RM122,800, plant and equipment of RM530,000, and total liabilities of RM611,200. It is estimated that the inventory can be disposed of in a liquidation sale for 80 percent of its cost, all but 5 percent of the accounts receivable can be collected, and plant and equipment can be sold for RM380,000. Required: (0) Determine the shareholders' equity before the liquidation. (2 marks) (i) Calculate the amount of cash that would be available to the owners if the accounts receivable are collected, the other assets are sold as described above, and the liabilities are paid off in full. (5 marks) (ii) Briefly explain why the amount of cash available to the shareholders (computed in part ii) is different from the amount of total shareholders' equity calculated in part i. Show all workings. (3 marks) (b) Presented here is the income statement for Big Shot Inc. for the month of May, RM Sales 65,000 Cost of goods sold 56,000 Gross profit 9,000 Operating expenses 14,000 Operating loss (5,000) Time left 2:28:32 Based on an analysis of cost behaviour patterns, it has been determined that the company's contribution margin ratio is 20%. Formulas: Contribution margin Sales-Variable expenses; Contribution margin ratio= Contribution margin/Sales; Breakeven point in sales - Fixed cost/Contribution margin Required: (i) Rearrange the preceding income statement to the contribution margin format. (5 marks) (i) If sales increase by 30%, what will be the firm's operating income? (5 marks) (i) Calculate the amount of revenue required for Big Shot to break even. (3 marks) (iv) Suggest how the company can increase its operating income. (2 marks)