Consider the financial statements alongside the notes presented by Simple Things Industries and prepare the statement of cash flows for the year ended December 31, 2014. Notes Acquisition of plant asset during 2014 310,000 Sale proceed from sale of plant asset 50,000 Receipt for issuance of notes payable 90,000 Payment for note
Consider the financial statements alongside the notes presented by Simple Things Industries and prepare the statement of cash flows for the year ended December 31, 2014. Notes Acquisition of plant asset during 2014 310,000 Sale proceed from sale of plant asset 50,000 Receipt for issuance of notes payable 90,000 Payment for note
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Consider the financial statements alongside the notes presented by Simple Things Industries and prepare the statement of
|
Notes |
||
|
Acquisition of plant asset during 2014 |
310,000 |
|
|
Sale proceed from sale of plant asset |
50,000 |
|
|
Receipt for issuance of notes payable |
90,000 |
|
|
Payment for note payable |
10,000 |
|
|
Dividend paid |
10,000 |
Transcribed Image Text:Simple Things Industries Ltd.
Comparative Balance Sheet
December 312014 and 2013
2014
2013 Incease/(Decrease)
Asses
Current:
Cash
22,000
42,000
(20,000)
A ccounts Receivable
90,000
73,000
17,000
143,000
460.000
(2,000)
250.000
245.000
Inventory
145,000
Plant assets, net
210,000
Total As set
715,000
470,000
Liabilities
Current:
Accounts payable
90,000
50,000
40,000
Acarued liabilities
5,000
10,000
(5,000
Long term notes payable
Stockholders' Equity
160,000
80,000
80,000
Common Stock
370,000
250,000
120,000
Retained earnings
110,000
80,000
30,000
Treas ury stock
(20,000)
715.000
(20,000)
245,000
Totalliabilities and stockholders' equity
470,000
Simple Things Industries Ltd
Income Statement
Year Ended December 31,2014
Revenues and gains:
Sales revenue
286,000
Interestrevenue
12,000
9,000
Dividend revenue
Gainon sale of plant as set
10,000
Total revenues and gains
317,000
Expenses
Costof goods sold
Salary and wages expense
Depreciationexpense
Other operating expens e
156,000
56,000
20,000
18,000
15,000
14,000
Interest expense
Income tax expense
Total expenses
Net Income/(Loss)
277,000
40,000
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