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please help me solve it step by step Question 3 (30 marks) a. The income statement and a partial balance sheet for Mango Company are
please help me solve it step by step
Question 3 (30 marks) a. The income statement and a partial balance sheet for Mango Company are presented below. Mango Company Income statement For the year Ended December 31, 2020 Sales $260,000 105,600 Cost of goods sold Gross Profit $154,400 $24,000 Operating expenses: Salaries Depreciation expense Miscellaneous Net Income 16,000 10,600 50,600 $103,800 Mango Company Balance Sheet As at 31 December 2020 2017 2016 Cash 100,000$ 224,000$ 13,200 8,800 Account receivable Inventories 8,000 16,800 Prepaid expenses 10,800 10,800 Accounts Payable 6,200 8,800 Salaries Payable 6,120 5,320 Required: Prepare the operating activities section of the statement of cash flows using indirect method (15 Marks) ou b. Morning star plc. is a manufacturer of computer accessories. The following are details for the year ended December 31, 2020. Cash-80,000 Inventories - 40,000 Salaries expenses- 10,000 Payables=40,000 Short term borrowings - 60,000 P.P.E=240,000 Receivables - 70,000 Furniture - 30,000 Long term loans 140,000 Interest Expenses - 12,000 Required: Using the information above, compute the Company's below ratio and comment on each: a. Acid-test ratio b. Current ratio c. Gearing ratio (15 Marks) OU EO Step by Step Solution
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