Please answer the question 4 in the pictures. Many thanks for your help!
Suggested time allocation: 54 Minutes Presented below is the statement of financial position for Lordtop Ltd as at 30 June 2020 with 30 June 2019. Lordtop Ltd Statement of Financial Position as at 30 June Assets 2020 $ 2019 5 Cash 234,600 74,600 Accounts Receivable 127,200 111,300 Inventory 275,000 221,200 Prepaid Expenses 22,800 23,000 Land 238,000 199,000 Building 639,000 339,000 Accumulated Depreciation-Building -111,400 -97,600 Equipment 361,200 331,200 Accumulated Depreciation - -89.900 -67,000 Equipment 1,696,500 1,134,700 Liabilities and Shareholders' Equity Accounts Payable 215,000 218,000 Accrued Expense Payable 10,500 14,000 Income Tax Payable 26,000 24,000 Bond Payable 590,000 350,000 Share Capital 588,100 388,100 Retained Earnings 266,900 140,600 1,696,500 1,134,700 Examination of the company's income statement and general ledger accounts for the year ending 30 June 2020 disclosed the following: 1. Net Sales for the period were $1,100 000; Cost of Sales amounted to $650,000; Other Expenses (excluding depreciation) amounted to $160,000 2. Income tax expense for the year amounted to $117,000 3. 50,000 shares were issued at $4.00 4. Bonds of $150,000 were issued for cash 5. An extension was added to the building at the cost of $300,000 cash 6. In January 2020 the company declared and in April 2020 paid $70,000 cash dividend 7. Vacant land next to the company's plant was purchased for $129,000 with payment consisting of $39,000 cash and a bond payable for $90,000 Land with a carrying amount of $90,000 was sold for $150,000 9. Equipment costing $30,000 was purchased for cash.Required Prepare a statement of cash flows for Lordtop Lid for the year ended 30 June 2020 using the direct method as follows: a) Cash flows from operating activities (4 Marks) i. Cash receipts from customers ii. Cash payments to suppliers iii. Cash payments for expenses iv . Cash payments for income taxes b) Cash flows from investing activities (4 Marks) i. Purchase of equipment ii. Purchase of land iii. Purchase of building iv . Proceeds from sale of land c) Cash flows from financing activities (3 Marks) i. Proceeds from issue of shares ii. Proceeds from bond borrowings iii. Payments of dividends d) Cash flows reconciliation from beginning period to end period (3 Marks) i. Net increase/decrease in cash and cash equivalents ii. Cash at the beginning of the period iii. Cash at the end of the period e) Workings: i. Cash received from customers (3 Marks) ii. Cash paid to suppliers (5 Marks) iii. Cash paid for services (5 Marks) iv . Cash paid for taxes (3 Marks) Question 3 20 Marks Suggested time allocation: 36 Minutes On 10 June 2020, Lord-fine Company purchased $10,000 of merchandise from Elizer Company, FOB shipping point, terms 2/10, n/30. The merchandise purchased by Lord-fine Company costs Elizer Company $6,000. On 11 June 2020, Lord-fine Company pays freight costs of $200. On 12 June 2020, damaged goods totalling $400 are returned to Elizer Company for credit. The fair value of the damaged goods returned are $240. On 19 June 2020, Lord-fine Company settles the full payment due to the Elizer Company. Both companies use a perpetual inventory system
