Question 4: (20 marks) A. A partial balance sheet for orange company is presented below. Orange Company Income statement For the year Ended December 31, 2019 Sales $100,000 Cost of goods sold 55.000) Gross Profit 545.000 Operating experies Salaries $10.000 Depreciation expense 4,000 Miscellaneous 1,000 15.000) Net Income $20,000 Orange Company Balance Sheet As at 31 December 2019 2018 2019 57.000 SS 000 Cas| 1,200 1,500 Account receivable 2.500 2.000 Inverteries 250 500 Prepaid expenses 2.500 4.500 Fami 10.000 7,000 Accounts Payable 900 500 Salaries Payable 1.500 2.000 Short term Bank Low Required: Prepare the operating activities section of the statement of cash flows using indirect method. (10 Marks) B. The balance sheet of Fahmy ple shows the following information in its assets and liability and equity section: Non-current assets 350,000 250,000 GOLON Total Liabilities and Equity Total Liabilities Equity Share capital ordinary shares of 2 cach 400.000 Reeves Share premium Reserves Retained earning 50,000 Total Liabilities and Equity Fahmy Pic Needs to raise more cash and decided to make 1 for 4 rights issue, fully paid in cash at a price $6 per share. Required: Show by using detailed workings the effect on the balance sheet accounts of the rights issue