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.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
Related questions
Question
I would like question 3 answered using the information. I would like the cash flow statement done.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning