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

Question
  1. 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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