Student name: Student Number Question 1: [4 marks] Presented below is the income statement of Grand Stores, Inc for 2020: I Sales $560,000 Cost of goods sold ( 420,000) Gross profit S140,000 - Operating expenses ( 60,000) Income before taxes 80.000 - Income taxes 30% (24.000) Net income $ 56,000 Notes related to 2020: Operating expenses includes depreciation expense for the year for $ 7,000. Income taxes amount include S 3000 related to Investing activities. The company does not include any interest or dividend cash flows in the operating section of the statement of cash flows. In addition, the following Statement of financial position as follows: 31/12/2019 31/12/2020 Assets Cash 10,000 15,000 Treasury Bills (Maturity 70 days) 8.000 10,000 Accounts receivable 20.000 46,000 Headings No Space Heading Ting 2 Heading Tui Suite les In addition, the following Statement of financial position as follows: 31/12/2019 31/12/2020 Assets Cash 10,000 15,000 Treasury Bills (Maturity 70 days) 8.000 10,000 Accounts receivable 20.000 46.000 Prepaid income tax 5.000 3,000 Inventories 10.000 21.000 Property, Plant & Equipment (net) 40,000 30,000 Total assets 113.000 125,000 21.000 Liabilities and Owners Equity Accounts payable Interest expense payable Long-term Loan Share Capital - Ordinary Read Fami 16.000 8.000 0 33.000 22.000 20.000 16 27.000 5500 } F!! Adana 21,000 16,000 1.000 33.000 0 Accounts payable Interest expense payable Long-term Loan Share Capital - Ordinary Retained Earnings Total liabilities & Owners Equity 22.000 20,000 36,000 113,000 27.000 55,000 125,000 Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the Indirect method Answer Grand Stores, Inc. Statement of Cash Flows (lexirect Method) Cash flows from operating activities A. Aabe BBC Alba AaBbc abce. A AaB Healing 1 omat Ne Spacing Heading Question 2: 4 marks Jordan Corp.'s transactions for the year ended December 31, 2020 included the following Sold non-trading investments for $500.000 cast. dividends Paid of $600,000 Issued 500 ordinary shares for 5250,000 cash. Purchased equipment for S125,000 cash. Paid S450,000 toward a bank loan accounts receivable Reduced by $100,000 Received cash dividends $20.000 I Increased accounts payable $200,000 Purchased real estate for 3550,000 cash which was borrowed from a bank Lastruction: . Prepare a schedule computing the net cash flow from investing activities that would be shown on a statement of cash flows using the Indirect method. Note The company does not include any interest or dividend cash flows in the operating section of the statement of cash flows. Answer Statement of Cash Flows Cladirect Method) Onestion Answer the following questions A) Ending inventory penis was company Dec 31, 2020 as follows marlo Raw materiale Finished good Cost 14000 Nel realizable and 11000 55000 The muling inventory shall present intement of finmal position Dec 31, 2010 JD B) Os December 1, 2020. Madale company good comes for The purchase price (deformed for 2 years) $ 90.000 Note the caucherie 575.000 shipping costs of de 55000 Storage coduring December 2006 advertisement newspapers but the arrival of the goods 1000 As of 31/12/2020 it was found that 10% of the goods are still olund by the compey. The cost of the inventory that will appear in the company's statement of financial position on 31/12/2019 is D 0 1 Questions Anwer (True or Valve Determine which Tror Valse for the following area. Statements 1. Agnculture et comprising cultural produce that an entity in harvested from its biological assets are in initial rection at their counces to the point of harvest 9 wlocated overheads are we put of this produced in the period which they are incred Normalment of wated all out the production od inde in the stor in The allocation of election to the bordon the Apofton facilitie