The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distributed at a meeting of the company’s board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information. Having identified the information in line with your surname you are next required to address the requirements outline below. Financial info to be used by H Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 238,000 138,000 ? Accounts Receivable 325,000 300,000 ? Inventories 280,000 350,000 ? Prepaid expenses 28,000 35,000 ? Intangible assets 328,000 328,000 ? Plant assets, net 1,200,000 980,000 ? Total Assets 2,399,000 2,131,000 Liabilities Accounts payable 180,000 240,000 ? Accrued liabilities 310,000 415,000 ? Income tax payable 105,000 100,000 ? Long-term notes payable 1,350,000 800,000 ? Stockholders' Equity Common Stock 330,000 295,000 ? Retained earnings 450,000 345,500 ? Treasury stock (326,000) (64,500) ? 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 Requirements Prepare a complete statement of cash flows for 2014 using the indirect method using the information

The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distributed at a meeting of the company’s board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information. Having identified the information in line with your surname you are next required to address the requirements outline below. Financial info to be used by H Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 238,000 138,000 ? Accounts Receivable 325,000 300,000 ? Inventories 280,000 350,000 ? Prepaid expenses 28,000 35,000 ? Intangible assets 328,000 328,000 ? Plant assets, net 1,200,000 980,000 ? Total Assets 2,399,000 2,131,000 Liabilities Accounts payable 180,000 240,000 ? Accrued liabilities 310,000 415,000 ? Income tax payable 105,000 100,000 ? Long-term notes payable 1,350,000 800,000 ? Stockholders' Equity Common Stock 330,000 295,000 ? Retained earnings 450,000 345,500 ? Treasury stock (326,000) (64,500) ? 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 Requirements Prepare a complete statement of cash flows for 2014 using the indirect method using the information

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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Question

Financial info to be used by H

Simple Things Industries Ltd.
Comparative Balance Sheet
December 31, 2014 and 2013
	2014	2013	Increase/(Decrease)
Assets
Cash	238,000	138,000	?
Accounts Receivable	325,000	300,000	?
Inventories	280,000	350,000	?
Prepaid expenses	28,000	35,000	?
Intangible assets	328,000	328,000	?
Plant assets, net	1,200,000	980,000	?
Total Assets	2,399,000	2,131,000
Liabilities
Accounts payable	180,000	240,000	?
Accrued liabilities	310,000	415,000	?
Income tax payable	105,000	100,000	?
Long-term notes payable	1,350,000	800,000	?
Stockholders' Equity
Common Stock	330,000	295,000	?
Retained earnings	450,000	345,500	?
Treasury stock	(326,000)	(64,500)	?
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

Requirements

Prepare a complete statement of cash flows for 2014 using the indirect method using the information

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