question 5

L Question 5 (20 marks) Bill Sing's manager was not impressed with his work on the other question. Bill tried to find the answers on Chegg and Course Hero but was not successful. The boss really wants to fire Bill because of his lack of financial knowledge (he cheated throughout his studies), even though Bill Sing claims to have scored a 95% in Managerial Finance. As a sign of good faith, the boss gives Bill one more opportunity to prove himself. The following information was provided by the company Rotomac Inc. a. Prepare a Statement of Comprehensive Income (both years) b. Prepare a Statement of Financial Position (both years) c. Calculate Operating Cashflow for the year 2020 d. Interest expense has decreased significantly in 2020. In a brief sentence or two explain why this may have occurred. e. Depreciation expense has decreased significantly in 2020. In a brief sentence or two explain why this may have occurred. Year 2019 Year 2020 Depreciation 34,375 8,970 Cost of Goods 21,485 26,420 Other Expenses 5,110 1450 Interest 12000 1,190 Gross Sales 80190 91,470 Cash 82,765 84,915 Accounts Receivable 38,385 51,905 Sales Returns 4455 4,835 Short Term Notes Payable 3,825 1,695 Long Term Debt 209,730 133,360 Sales Discounts 7,835 5,280 Net Fixed Assets 374,795 293,075 Accounts Payable 73,675 81,080 Prepaid Expenses 2,500 4,500 Inventory 77,130 82,555 Dividends 75 Owners Equity 288,345 297,815 Sales Allowances 5,405 2500 Tax rate 40% 40% NB- If EBT is negative Tax expense will be so