please do the Direct Method.

Page 22/24 000 Group C Problems 16C1. From tise following income statement, balance sheet, and added informa tion for Empire Company Lol prepare a statement of cables using the indirect method Empire Company Ltd Income Statement For the Year Ended May 31, 2015 Sales $512.520 Colof Good Sold 200140 Gross Profit Expen Advert $21,480 Amortization 23,910 17.638 Interest SONO Miscellaneous 18.400 Rere Salas 3402 Tocal Expres 185 60 Net Income 36520 Empire Company Balance Sheet As of May 31, 2015 and 2014 Assets 2015 2014 Current Assets Cash $10.500 $ 3.60 Temporary Tree 50,000 30.00 Accounts Receivable Net 69,930 5845 Merchandise 84,550 61,894 Prepaid Trance 7.815 Pride 12,000 12.000 Toul Current Act 178.860 Plant and Equipment Automotive 5 72.480 Les Accum. Amart 39.400 19,200 12.400 40,00 Computers and Related 17,140 Les Accum Amart 26.200 16.30 17.400 Store Equipment . 138.130 Less Accum. Amon 6490 94,050 54.130 14,240 Plant and mental 149.930 144260 Total Asses $385,395 $325,104 Cho C. CHAPTER Liabilities and Shareholders' Equity Current Bank Loan Payable Accounts Payable Accrued Salaries Current Portion of Auto Loan Payable Total Current Liabil Long-Term Liability Automotive Lom Long Term Portion Total Liabilities Shareholders' Equity 22.000 36.36 2.514 10.10 121.450 1940 78.675 3465 11 50 113.300 27.435 148.85 12.724 166104 Liabilities and Shareholders' Equity Current Liabilities: Bank Loan Payable 22,000 19,400 Accounts Payable 86,386 78,675 Accrued Salaries 2,814 3,465 Current Portion of Auto Loan Payable 10,250 11,840 Total Current Liabilities 121,450 113,380 Long-Term Liability: Automotive Loan --Long-Term Portion 27,425 32,724 Total Liabilities 148,875 146,104 Shareholders' Equity Preferred Shares $6,00 Nonparticipating 120,000 90,000 Common Shares 20,000 15,000 Retained Earnings 96,520 72,000 Total Shareholders' Equity 236,520 177,000 Total Liabilities and Shareholders' Equity $385,395 $323,104 Additional Data: 1. All fixed asset additions were paid by cheque. 2. A dividend of $12,000 was paid in cash during the year. 3. Additional preferred and common shares were sold for cash. 4. There were no disposals of capital assets during the year. 5. The company defines cash as including Temporary Investments. Statement of cash flows-direct method 00 (90 min) che Fier