Kindly also include a section to the Comparative Balance Sheet that shows whether there was an increase or decrease and by what amount. Sign Language Hearing Co LtdIncome StatementSign Language Hearing Co LtdComparative Balance SheetOctober 31, 2020, and 2021Year Ended October 31,2021Revenues and gains:Sales revenue1,500,00028,00020212020Gain on sale of equipmentInterest revenueTotal revenues and gainsExpensesCost of goods soldSalary expenseDepreciation expenseRent expenseTotal expensesAssetsCash and cash equivalentAccounts Receivable450,000350,000440,850225,222185,0001,528,000315,898185,000495,880Inventory704,500185,00040,000200,000Prepaid expensesEquipment, net668,5001,869,572Total Assets1,446,778LiabilitiesAccounts payableAccrued liabilitiesBond payableStockholders' Equity:198,500190,545365,5201,129,500398,50044,500354,000Income before income taxesIncome tax expense225,550555,840Net ProfitCommon Stock245.600Retained earningsTreasury stock1,037,582(195,000)| 1,869,572145,600711,613(165,000)NotesPurchase of equipmentCash receipt from sale of equipmentIssuance of bonds payable to borrow cashCash receipt from issuance of common stockDividend paidBook value of equipment sold337,620153,000Total liabilities and stockholders' equity1,446,778190.320100,00028,031125,00030,000Purchase of treasury stockPaRequirements1. In comparison to investing and financing activities, it is often said that cash from operating activities must be themain source of cash to achieve long term success of the company. Do you agree or disagree with this statement?In your own words, give reason or reasons to support your answer taking into consideration the possibleconsequences of the cash being provided by any of the other two activities over the long run.2. Prepare a complete statement of cash flows for October 2021 using the indirect method based on the informationand guidance provided above.

1. Comparative Balance Sheet - In comparison of balance sheets of two different years included lots…

Sign Language Hearing Co Ltd Income Statement Sign Language Hearing Co Ltd Comparative Balance Sheet October 31, 2020, and 2021 Year Ended October 31,2021 Revenues and gains: 1,500,000 28,000 Sales revenue 2021 2020 Gain on sale of equipment Interest revenue Assets Cash and cash equivalent Accounts Receivable 350,000 440,850 225,222 185,000 668,500 1,869,572 450,000 1,528,000 Total revenues and gains Expenses Cost of goods sold Salary expense Depreciation expense Rent expense Total expenses Income before income taxes Inventory Prepaid expenses Equipment, net 315,898 185,000 495,880 704,500 185,000 40,000 200,000 Total Assets 1,446,778 Liabilities Accounts payable 198,500 190,545 365,520 1,129,500 398,500 44,500 354,000 Accrued liabilities 225,550 555,840 Income tax expense Bond payable Stockholders' Equity: Net Profit Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 245,600 1,037,582 145,600 711,613 (165,000) 1.446.778 Notes (195,000) 1.869.572 Purchase of equipment Cash receipt from sale of equipment Issuance of bonds payable to borrow cash Cash receipt from issuance of common stock Dividend paid Book value of equipment sold Purchase of treasury stock 337,620 153,000 190,320 100,000 28,031 125,000 30,000 Requirements 1. In comparison to investing and financing activities, it is often said that cash from operating activities must be the main source of cash to achieve long term success of the company. Do you agree or disagree with this statement? In your own words, give reason or reasons to support your answer taking into consideration the possible consequences of the cash being provided by any of the other two activities over the long run. 2. Prepare a complete statement of cash flows for October 2021 using the indirect method based on the information and guidance provided above.

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 2AP