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a) Answer a) below: T-accounts if required (no marks) 2019 Question 515 marks) Armstrong Corporation Statement of Financial Position As at June 30 2020 Assets Cash 405,000 Accounts receivable 181,000 Merchandise inventory 175.000 Long term Investments 437,000 Equipment 1,351.000 Less: Accumulated depreciation (485.000) ( 2,064,000 Liabilities and Shareholders' Equity Accounts payable 142,000 Income tax payable Bonds payable Common shares 463,000 Retained earnings 903,000 2,064.000 428,000 156,000 210,000 580,000 ####### (430,000) 7,000 549.000 178,000 4,000 870,000 403,000 704,000 Armstrong Corporation Income Statement For the year ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses Income from operations 508,900 576,300 321,500 254,800 2,064,000 Armstrong Corporation Income Statement For the year ended June 30, 2020 Sales Cost of goods sold 508,900 Gross profit 576,300 Operating expenses 321,500 Income from operations 254,800 Interest expense 4,100 Gain on sale of equipment 6,000 Income before income tax 256,700 Income tax expense 32,400 Net income 224,300 Additional information: Depreciation expense is included in "operating expenses." Accounts payable is related to the purchase of inventory. During the year, a piece of equipment that originally cost $65,000 was sold for cash. The equipment had a book value of $52,000 at the time of the sale REQUIRED: Prepare in good form, a statement of cash flows for the year ended June a) 30, 2020, using the direct method to report the operating activities. (11.5 marks) b) Prepare the operating activities section only, using the indirect method. (3.5 marks) b) answer b) below a) Answer a) below: T-accounts if required (no marks) 2019 Question 515 marks) Armstrong Corporation Statement of Financial Position As at June 30 2020 Assets Cash 405,000 Accounts receivable 181,000 Merchandise inventory 175.000 Long term Investments 437,000 Equipment 1,351.000 Less: Accumulated depreciation (485.000) ( 2,064,000 Liabilities and Shareholders' Equity Accounts payable 142,000 Income tax payable Bonds payable Common shares 463,000 Retained earnings 903,000 2,064.000 428,000 156,000 210,000 580,000 ####### (430,000) 7,000 549.000 178,000 4,000 870,000 403,000 704,000 Armstrong Corporation Income Statement For the year ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses Income from operations 508,900 576,300 321,500 254,800 2,064,000 Armstrong Corporation Income Statement For the year ended June 30, 2020 Sales Cost of goods sold 508,900 Gross profit 576,300 Operating expenses 321,500 Income from operations 254,800 Interest expense 4,100 Gain on sale of equipment 6,000 Income before income tax 256,700 Income tax expense 32,400 Net income 224,300 Additional information: Depreciation expense is included in "operating expenses." Accounts payable is related to the purchase of inventory. During the year, a piece of equipment that originally cost $65,000 was sold for cash. The equipment had a book value of $52,000 at the time of the sale REQUIRED: Prepare in good form, a statement of cash flows for the year ended June a) 30, 2020, using the direct method to report the operating activities. (11.5 marks) b) Prepare the operating activities section only, using the indirect method. (3.5 marks) b) answer b) below

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