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Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,224,000 Gain on sale of plant assets Total revenues and gains 115,500 2,339,500 Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 1,305,000 165,400 405,400 1,875,800 Income before income taxes 463,700 Income tax expense 265,000 Net Income 198,700 Notes Acquisition of plant asset during 2014 600,900 PConverted by PDF to G Sale proceed from sale of plant asset 356,000 Receipt for issuance of notes payable 384,900 nttps://www.PDF-Helper.com/pdf-to-jpg/ Payment for note payable 450,000 Dividend paid 148,500 Book value of equipment sold 240,500 1. Reconstruct the company's comparative balance sheet for 2013/2014 using the information and compute and show the missing figures to include the appropriate sign as a positive or negative figure. 2. Which category of the statement of cash flow is considered as the most important? Why? 3. Prepare a complete statement of cash flows for 2014 using the indirect method using the information.

Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,224,000 Gain on sale of plant assets Total revenues and gains 115,500 2,339,500 Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 1,305,000 165,400 405,400 1,875,800 Income before income taxes 463,700 Income tax expense 265,000 Net Income 198,700 Notes Acquisition of plant asset during 2014 600,900 PConverted by PDF to G Sale proceed from sale of plant asset 356,000 Receipt for issuance of notes payable 384,900 nttps://www.PDF-Helper.com/pdf-to-jpg/ Payment for note payable 450,000 Dividend paid 148,500 Book value of equipment sold 240,500 1. Reconstruct the company's comparative balance sheet for 2013/2014 using the information and compute and show the missing figures to include the appropriate sign as a positive or negative figure. 2. Which category of the statement of cash flow is considered as the most important? Why? 3. Prepare a complete statement of cash flows for 2014 using the indirect method using the information.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I would like question 3 answered using the information. I would like the cash flow statement done.

Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 238,000 215,200 303,200 358,300 Accounts Receivable 259,300 Inventories 348,200 Prepaid expenses Intangible assets 35,350 43,100 205,000 205,000 Plant assets, net 1,105,000 910,000 Total Assets 2,244,850 1,980,800 Liabilities Accounts payable 254,300 240,000 Acerued liabilities onverted by F to 90 415,300 135,400 Income tax payable Long-term notes payable Stockholders Equity Čommon Stock Retained earnings 115,000 845,400 910,500 htest Raiw.PDF-Helper com/pdf-to-jpg/ 295,500 275,300 345,600 295,400 Treasury stock Total liabilities and stockholders' equity (26,250) (285,800) 2,244,850 1,980,800
Transcribed Image Text:Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 238,000 215,200 303,200 358,300 Accounts Receivable 259,300 Inventories 348,200 Prepaid expenses Intangible assets 35,350 43,100 205,000 205,000 Plant assets, net 1,105,000 910,000 Total Assets 2,244,850 1,980,800 Liabilities Accounts payable 254,300 240,000 Acerued liabilities onverted by F to 90 415,300 135,400 Income tax payable Long-term notes payable Stockholders Equity Čommon Stock Retained earnings 115,000 845,400 910,500 htest Raiw.PDF-Helper com/pdf-to-jpg/ 295,500 275,300 345,600 295,400 Treasury stock Total liabilities and stockholders' equity (26,250) (285,800) 2,244,850 1,980,800
Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,224,000 Gain on sale of plant assets Total revenues and gains Expenses Cost of goods sold 115,500 2,339,500 1,305,000 165,400 Depreciation expense Other operating expense Total expenses 405,400 1,875,800 Income before income taxes 463,700 Income tax expense 265,000 Net Income 198,700 Notes Acquisition of plant asset during 2014 600,900. PConverted by PDF to JPG Sale proceed from sale of plant asset 356,000 Receipt for issuance of notes payable 384,900 https://www.PDF-Helper.com/pof-to-jpg/ Payment for note payable 450,000 Dividend paid 148,500 Book value of equipment sold 240,500 1. Reconstruct the company's comparative balance sheet for 2013/2014 using the information and compute and show the missing figures to inclue a positive or negative figure. the appropriate sign as 2. Which category of the statement of cash flow is considered as the most important? Why? 3. Prepare a complete statement of cash flows for 2014 using the indirect method using the information.
Transcribed Image Text:Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,224,000 Gain on sale of plant assets Total revenues and gains Expenses Cost of goods sold 115,500 2,339,500 1,305,000 165,400 Depreciation expense Other operating expense Total expenses 405,400 1,875,800 Income before income taxes 463,700 Income tax expense 265,000 Net Income 198,700 Notes Acquisition of plant asset during 2014 600,900. PConverted by PDF to JPG Sale proceed from sale of plant asset 356,000 Receipt for issuance of notes payable 384,900 https://www.PDF-Helper.com/pof-to-jpg/ Payment for note payable 450,000 Dividend paid 148,500 Book value of equipment sold 240,500 1. Reconstruct the company's comparative balance sheet for 2013/2014 using the information and compute and show the missing figures to inclue a positive or negative figure. the appropriate sign as 2. Which category of the statement of cash flow is considered as the most important? Why? 3. Prepare a complete statement of cash flows for 2014 using the indirect method using the information.
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