Prepare a complete statement of cash flows for 2014 using the indirect method using the information below. 2014 2013 Increase/(Decrease) Assets Cash 238,000 138,000 100,000 Accounts Receivable 325,000 300,000 25,000 Inventories 280,000 350,000 -70,000 Prepaid expenses 28,000 35,000 -7000 Intangible assets 328,000 328,000 0 Plant assets, net 1,200,000 980,000 220,000 Total Assets 2,399,000 2,131,000 Liabilities Accounts payable 180,000 240,000 -60,000 Accrued liabilities 310,000 415,000 -105,000 Income tax payable 105,000 100,000 5,000 Long-term notes payable 1,350,000 800,000 550,000 Stockholders' Equity Common Stock 330,000 295,000 35,000 Retained earnings 450,000 345,500 104,500 Treasury stock (326,000) (64,500) (261,500) Total liabilities and stockholders' equity 2,399,000 2,131,000 Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,450,000 Gain on sale of plant assets 103,200 Total revenues and gains 2,553,200 Expenses Cost of goods sold 945,000 Depreciation expense 185,000 Other operating expense 398,500 Total expenses 1,528,500 Income before income taxes 1,024,700 Income tax expense 245,000 Net Income 779,700 Notes Acquisition of plant asset during 2014 610,000 Sale proceed from sale of plant asset 308,200 Receipt for issuance of notes payable 870,000 Payment for note payable 320,000 Dividend paid 675,200 Book value of equipment sold 205,000
- Prepare a complete statement of
cash flows for 2014 using the indirect method using the information below.
|
2014 |
2013 |
Increase/(Decrease) |
Assets |
|
|
|
Cash |
238,000 |
138,000 |
100,000 |
|
325,000 |
300,000 |
25,000 |
Inventories |
280,000 |
350,000 |
-70,000 |
Prepaid expenses |
28,000 |
35,000 |
-7000 |
Intangible assets |
328,000 |
328,000 |
0 |
Plant assets, net |
1,200,000 |
980,000 |
220,000 |
Total Assets |
2,399,000 |
2,131,000 |
|
Liabilities |
|
|
|
Accounts payable |
180,000 |
240,000 |
-60,000 |
Accrued liabilities |
310,000 |
415,000 |
-105,000 |
Income tax payable |
105,000 |
100,000 |
5,000 |
Long-term notes payable |
1,350,000 |
800,000 |
550,000 |
|
|
|
|
Common Stock |
330,000 |
295,000 |
35,000 |
|
450,000 |
345,500 |
104,500 |
|
(326,000) |
(64,500) |
(261,500) |
Total liabilities and stockholders' equity |
2,399,000 |
2,131,000 |
|
|
Simple Things Industries Ltd |
||
|
Income Statement |
||
|
Year Ended December 31,2014 |
||
|
Revenues and gains: |
|
|
|
Sales revenue |
2,450,000 |
|
|
Gain on sale of plant assets |
103,200 |
|
|
Total revenues and gains |
|
2,553,200 |
|
Expenses |
|
|
|
Cost of goods sold |
945,000 |
|
|
|
185,000 |
|
|
Other operating expense |
398,500 |
|
|
Total expenses |
|
1,528,500 |
|
Income before income taxes |
|
1,024,700 |
|
Income tax expense |
|
245,000 |
|
Net Income |
|
779,700 |
Notes |
|
||
Acquisition of plant asset during 2014 |
610,000 |
|
|
Sale proceed from sale of plant asset |
308,200 |
|
|
Receipt for issuance of notes payable |
870,000 |
|
|
Payment for note payable |
320,000 |
|
|
Dividend paid |
675,200 |
|
|
Book value of equipment sold |
205,000 |
|
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