02 You are given the following data of LMN company at December 31, 2018: Income Statement Items: Sales 3,250,000 Cost of goods sold 1,750,000 Loss on sale of equipment 90,000 Operating expenses (including depreciation of 120,000) 800,000 Selling expenses 200,000 Dividend income 100,000 Interest income 50,000 Gain on sale of vehicle 80,000 Interest expense 110,000 Income tax expense 130,000 650,000 700,000 Accounts Receivable Accrued Interest Receivable 10,000 7,000 Prepayments 30,000 Office Supplies 8,000 820,000 730,000 Inventories Short term prepayments Accounts Payable 20,000 15,000 540,000 562,000 Accrued Operating Expense 65,000 90,000 21,000 15,000 Accrued Interest Payable Accrued Income Tax Payable 18,000 32,000 1. Prepare Income statement in proper form (1) 2. Prepare cash flows from operating activities using direct method. Show supporting computations for the following (17) (a) Cash received from customers. (b) Interest received (c) Dividend received (d) Cash paid to suppliers (e) Cash paid to employees. (f) Interest pald (e) Income tax pald Q3. March1, 2019 ABC company purchased 1000 shares of XYZ company at the rate of Rs. 15 each. Market share price of XYZ Company decreases to Rs.12 each. March 31, 2019 April 30, 219 Market price of stock increases to Rs 20. a. Prepare the general journal of the above transactions. b. By how much amount, net income is increased or decreased? (3) (1)