You are the CFO for Lesedi Toy Company Ltd. The Board of Directors is meeting this afternoon. While reviewing your companys financial statements just minutes before the meeting you notice that no depreciation expense has been reported.

A) Describe to the board the impact that omitting this adjustment has had on your financial statements. (5 marks)

B) The Board has asked you whether this mistake would Impact their plan to declare a cash dividend during the meeting. Respond.