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		(67,000)
Gross Profit		$33,000
Operating expenses:
Salaries	$5,000
Depreciation expense	2,000
Miscellaneous	1,000	(8,000)
Net Income		$25,000

Orange Company Balance Sheet As at 31st December 2019
2018	2019
$1,800	$2,250	Cash
7,200	2,700	Account receivable
4,950	5,670	Inventories
500	450	Prepaid expenses
6,300	9,000	Furniture
1,350	1,350	Accounts Payable
180	1,080	Salaries Payable
4,000	4,500	Short term Bank Loan

Required: Prepare the operating activities section of the statement of cash flows using indirect method.(10Marks)

A. The balance sheet of Fahmy plc. shows the following information in its assets and liability and equity section:

Assets	$
Non-current assets	800,000
Current assets	200,000
Total Assets	1,000,000
Liabilities and Equity
Total Liabilities	200,000
Equity:
Share capital : ordinary shares of $ 5 each	500,000
Reserves : Share premium	200,000
Reserves : Retained earnings	100,000
Total Liabilities and Equity	1,000,000

Fahmy Plc. Needs to raise more cash and decided to make 1 for 4 rights issue, fully paid in cash at a price $10 per share.

Required:

Show by using detailed workings the effect on the balance sheet accounts of the rights issue.

(10 Marks)