Zalman Inc. provided us following data. 1. Balance Sheet as of December 31 of 2 2018 20174 1. 1. 226.35 87.00 2.50 93.00 30.00 5.00 443.85 192.60 130.00 0.00 80.00 15.00 15.00 432.60 1. Assets Current Assets Cash Trading securities Interest receivable- AR Inventory Prepaid Other Operating Expense- Current Assets, Total Long term investment Debt Securities (AFS) Property, Plants and Equipment Land Building Less : Accumulated Depreciation - Building Equipment Less : Accumulated Depreciation - Equipment- PP&E, Total Total Assets 1. 0.00 50.00 1. 1. 100.00 120.00 (24.00) 50.00 (16.00) 230.00 673.85 120.00 120.00 (12.00) 80.00 (25.00) 283.00 765.60 55.00 84.00 32.00 5.00 50.00 5.00 231.00 40.00 52.00 24.00 1.50 52.40 0.00 169.90 Liabilities Current Liabilities Accounts Payable Unearned Revenue Salary payable Interest payable Income tax payable Dividend payable Current liabilities, Total Long term liabilities Notes payable Equities Preferred Stock - $10 para Common Stock (issued, $2 par) Less : Treasury stock, at costa Retained Earnings Equities, Total Total Liabilities and Equities 50.00 100.00 80.00 160.00 (30.00) 182.85 392.85 673.85 80.00 160.00 (14.00) 269.70 495.70 765.60 20184 1.200.00 950.00 250.00 11 Income Statement Revenue COGS Gross profit Operating Expenses Salary Expense Depreciation expense for building and equipment Other operating expense (excluding salary expense and depreciation expense) Operating income Other incomes and expenses Interest Expense Interest Revenue Gain on Sale of Equipment Loss on Sale of Land Income from Operations before Taxes Income Tax expense- Net losse 120.00 19.25 220.00 (109.25) (6.50) 5.00 1.00 (10.00) (119.75) (47.90) (71.85) Notes for 2018 (otherwise noted) 1. Although the company has net loss, it had to pay dividend, not to disappoint the investors. 4 2. In 2018, $50 bonds were redeemed at book value (carrying value) 3. Investment in Debt securities (AFS) was sold, at par, on 1/1/2018, Fair value is same as book value. 4. There was no purchase of Trading securities and the sale price was same as the cost. 4 5. 50% of Accounts Payable is attributable to Inventory, and the rest 50% is attributable to Prepaid Expense. 6. There was no re-issuance of treasury stock. 4 7. There were no sale of Building in 2018. 4 8. The land sold has book value of $50. 9. Equipment on 12/31/2017 consists of two types, A and B. Type C was acquired on 7/1/2018 for cash. 9. Equipment oh 12/31/2017 consists of two types, A and B. Type C Was acquired oh 7/1/2018 for cash. As of 12/31/2017, the data on Equipment are : Type Coste Date | Annual deprDate Sold-Depreciation details | A 404 | 1/1/20154 5 4 4/1/18Straight line (8 years), $0 residual Be 404 1/1/2016 52 Not sold Straight line (8 years), $0 residual Total 80 Accumulated depreciation 254 Questions A.Prepare a table to show cash flows from operating activities (CFO) using direct method. Show your work clearly for all the numbers. B.Prepare a table to show cash flows from operating activities (CFO) using indirect method. Show your work clearly. C.Prepare a table to show cash flows from investing activities (CFI). Show your work clearly for all the numbers. Page 24 FSA HW6 2020 D.Prepare a table to show cash flows from financing activities (CFF). Show your work clearly for all the numbers