Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 110,000 70,000 ? Accounts Receivable 300,000 325,000 ? Supplies 350,000 280,000 ? Prepaid expenses 35,000 28,000 ? Intangible assets 215,000 215,000 ? Equipment, net 1,200,000 980,000 ? Total Assets 2,210,000 1,898,000 Liabilities Accounts payable 250,000 140,000 ? Accrued liabilities 210,000 215,000 ? Income tax payable 78,000 98,500 ? Long-term notes payable 602,000 725,000 ? Stockholders' Equity Common Stock 410,000 330,000 ? Retained earnings 730,000 450,000 ? Treasury stock (70,000) (60,500) ? Total liabilities and stockholders' equity 2,210,000 1,898,000 Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,100,000 Gain on sale of Equipment 85,000 Total revenues and gains 2,185,000 Expenses Cost of goods sold 900,000 Depreciation expense 150,000 Other operating expense 350,000 Total expenses 1,400,000 Income before income taxes 785,000 Income tax expense 210,000 Net Income 575,000 Notes Acquisition of Equipment during 2014 540,000 Sale proceed from sale of Equipment 255,000 Receipt for issuance of notes payable 27,000 Payment for note payable 150,000 Dividend paid 295,000 Book value of equipment sold 170,000 Requirements Reconstruct the company’s comparative balance sheet for 2013/2014 compute and show the missing figures to include the appropriate sign as a positive or negative figure. Prepare a complete statement of cash flows for 2014 using the indirect method using the information in line with your surname initial.

Question

 

Simple Things Industries Ltd.

Comparative Balance Sheet

December 31, 2014 and 2013

 

2014

2013

Increase/(Decrease)

        Assets

 

 

 

   Cash

     110,000

           70,000

 ?

   Accounts Receivable

     300,000

        325,000

 ?

   Supplies

     350,000

        280,000

 ?

   Prepaid expenses

       35,000

           28,000

 ?

   Intangible assets

     215,000

        215,000

 ?

Equipment, net

 1,200,000

        980,000

 ?

Total Assets

 2,210,000

     1,898,000

 

      Liabilities

 

 

 

   Accounts payable

     250,000

        140,000

 ?

   Accrued liabilities

     210,000

        215,000

 ?

   Income tax payable

       78,000

           98,500

 ?

Long-term notes payable

     602,000

        725,000

 ?

      Stockholders' Equity

 

 

 

Common Stock

     410,000

        330,000

 ?

Retained earnings

     730,000

        450,000

 ?

Treasury stock

     (70,000)

         (60,500)

 ?

Total liabilities and stockholders' equity

 2,210,000

     1,898,000

 

 

 

Income Statement

 

Year Ended December 31,2014

 

Revenues and gains:

 

 

 

   Sales revenue

 2,100,000

 

 

   Gain on sale of Equipment

       85,000

 

 

      Total revenues and gains

 

     2,185,000

 

Expenses

 

 

 

   Cost of goods sold

     900,000

 

 

   Depreciation expense

     150,000

 

 

   Other operating expense

     350,000

 

 

      Total expenses

 

     1,400,000

 

Income before income taxes

 

        785,000

 

Income tax expense

 

        210,000

 

Net Income

 

        575,000

Notes

   

 

Acquisition of Equipment during 2014

 

        540,000

 

Sale proceed from sale of Equipment

 

        255,000

 

Receipt for issuance of notes payable

 

           27,000

 

Payment for note payable

 

        150,000

 

Dividend paid

 

        295,000

 

Book value of equipment sold

 

        170,000

 

             

 

Requirements

  1. Reconstruct the company’s comparative balance sheet for 2013/2014 compute and show the missing figures to include the appropriate sign as a positive or negative figure.
  2. Prepare a complete statement of cash flows for 2014 using the indirect method using the information in line with your surname initial.

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