Questions $3-10$:

Note: If not stated, the applicable items are assumed to have been paid$/$received in cash.

On $31$ Dec $2023$ when it was founded, DEFT Co$.$ Ltd$.$ had a cash balance of $$90m$ on the asset side and shareholder equity of $$90m($paid$-$in capital$)$ on the liabilities and equity side. DEFT later bought a machine with a useful life of $10$ years on $1$ January $2024$ for $$80m,$ all paid in cash. Depreciation expense is calculated on a straight$-$line basis. During $2024,$ DEFT's sole supplier of raw materials, Prompt Supply Co$.$ Ltd supplied $$50m$ worth of raw materials to DEFT. DEFT paid $$30m$ to Prompt Supply. DEFT's revenue for the year was $$150m,$ and expenses on wages, utilities, rentals, fees amounted to $$50m.$

The amount of wages unpaid as of $31$ Dec $2024$ was $$5m$ but wage expense for $2024$ was $$30m.$ The amount of raw materials that was used to generate the revenue for $2024$ is $$40m.$ DEFT collected $$120m$ from customers in cash in $2024.$ DEFT paid dividend of $$14m$ in $2024.$

On $1$ January $2024,$ DEFT borrowed $$10m$ from a bank loan at $8\%$ interest rate. The maturity is two years and $$5m$ of principal repayment was paid in cash on $31$ Dec $2024.$ The remaining principal of $$5m$ will be paid on $31$ Dec $2025.$

The tax rate is $20\%.$ All applicable taxes have been paid in cash.

The financial year is from $1$ Jan $2024$ to $31$ Dec $2024.$

As of $31$ Dec $2024,$:

$3.$ Calculate the ending cash balance using the Direct Method? Show your work. $(5$ marks$)$

$4.$ Calculate the Net income for $2024.$ Show your work, i$.$e$.,$ present the Income Statement. $(5$ marks$)$

$5.$ Calculate the net Cash flow from Operations using the Indirect Method. $(5$ marks$)$

$6.$ Calculate the net Cash Flow from Financing using the Indirect Method. $(5$ marks$)$

$7.$ Calculate the net Cash flow from Investing. $(5$ marks$)$

$8.$ Calculate the ending cash balance using the Indirect Method, i$.$e$.,$ Ending cash balance $=$ Initial Cash Balance net Cash flow from Operations net Cash Flow from Financing net Cash flow from Investing. $(5$ marks$)$

$9.$ Calculate the total shareholder equity. $(5$ marks$)$

$10.$ Draw the balance sheet for DEFT. $(5$ marks$)$