Question 1 Assume Ekhaya Copy Centre ended the month of July 2019 with the following information R480 000 Payments of cash: Acquisition of Equipment Dividends 4 200 0 ? 12 000 Retained Earnings: June 30 2019 July 31 2019 Utilities Expense Adjustments to reconcile net income to net cash provided by operations salary expense Cash balance June 30, 2019, July 31, 2019, 2 300 168 000 0 10 000 cash receipts issuance of shares to owners 69 500 2300 69 500 Rent expense Share capital Equipment Office supplies Accounts payable Service Revenue 41 000 13 700 16 000 604 500 for Requirement A. 1. Prepare the income statement and the Statement of changes in Equity of b 7 Ekhaya Copy centre, for the month of July 2019 (11 Marks) 2. Prepare the balance sheet of Ekhaya Copy centre for July 2019 (9 marks) 3. Prepare the Statement of Cash Flows of Ekhaya copy centre for the month ended (9 Marks) 4. Explain the relationship among income statement, statement of changes in Equity, Balance Sheet and statement of cash flows (4 marks) B. The owner of Ekhaya Copy centre seeks your advice as to whether he should cease operations or continue the business. Complete the report giving him your opinion of net income, dividends, financial position, and cash flow during his first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations (7 marks) Question 1 Assume Ekhaya Copy Centre ended the month of July 2019 with the following information R480 000 Payments of cash: Acquisition of Equipment Dividends 4 200 0 ? 12 000 Retained Earnings: June 30 2019 July 31 2019 Utilities Expense Adjustments to reconcile net income to net cash provided by operations salary expense Cash balance June 30, 2019, July 31, 2019, 2 300 168 000 0 10 000 cash receipts issuance of shares to owners 69 500 2300 69 500 Rent expense Share capital Equipment Office supplies Accounts payable Service Revenue 41 000 13 700 16 000 604 500 for Requirement A. 1. Prepare the income statement and the Statement of changes in Equity of b 7 Ekhaya Copy centre, for the month of July 2019 (11 Marks) 2. Prepare the balance sheet of Ekhaya Copy centre for July 2019 (9 marks) 3. Prepare the Statement of Cash Flows of Ekhaya copy centre for the month ended (9 Marks) 4. Explain the relationship among income statement, statement of changes in Equity, Balance Sheet and statement of cash flows (4 marks) B. The owner of Ekhaya Copy centre seeks your advice as to whether he should cease operations or continue the business. Complete the report giving him your opinion of net income, dividends, financial position, and cash flow during his first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations (7 marks)