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.

Question

I would like question 3 answered using the information. I would like the cash flow statement done.

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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.
Expand
Transcribed Image Text

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.

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