Phuket 178 Chapter 5 P5-6A Items from the accounts of Marchand Distributors at May 31, 2020, follow, listed in alphabetical order. Marchand Distributors was the perpetual inventory system. For simplicity, the operating expenses are summarized in the General Expenses and the Selling Expenses accounts Accounts Payable. $ 51,000 Interest Payable..... $ 2.800 Accounts Receivable.... 107,500 Interest Revenue... 600 Accumulated Amortization-Equipment. 96,900 Inventory, May 31, 2020.... 147,100 C. Marchand, Capital... 167,800 Notes Payable, Long-Term. 114,800 C. Marchand, Withdrawals.... 66.900 Salaries Payable 7,200 Cash 19,900 Sales Discounts 26,500 Cost of Goods Sold... 1,086,900 Sales Returns and Allowances.......... 45,900 Equipment. 340,800 Sales Revenue... 1,991,500 General Expenses.... 206,800 Selling Expenses 357,200 Interest Expense.. 9,200 Supplies....... 33,100 Uneamed Sales Revenue... 15,200 Required 1. Prepare the business's single-step income statement for the year ended May 31, 2020. Show Net Sales Revenue and not the individual accounts. 2. Prepare the statement of owner's equity for the year ended May 31, 2020 3. Prepare Marchand Distributors' classified balance sheet in report format at May 31, 2020. Sheila's Society Clothing Manufacturer has collection centres around the country to speed up cash collections. The company also makes its disbursements from remote disbursement centres, so cheques written by Sheila's take longer to clear the bank. Collection time has been reduced by two and one-half days and disbursement time has been increased by one and one-half days because of these policies. Excess funds are being invested in short-term instruments yielding 6 percent per annum a. If the firm has $4 million per day in collections and $3 million per day in disbursements, how many dollars has the cash management system freed up? (Enter the answer in dollars not in millions.) Freed-up funds b. How much can Sheila's earn per year on short-term investments made possible by the freed-up cash? (Enter the answer in dollars not in millions.) S Interest on freed-up cash