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 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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5RE: In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts...

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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

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