Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 175,000 15,000 Accounts Receivable 230,000 220,000 Inventories 310,000 340,000 10,000 ? Prepaid expenses Intangible assets Equipment, net Total Assets 30,000 105,000 105,000 860,000 830,000 ? 1,710,000 1,520,000 Liabilities Accounts payable 90,000 140,000 Accrued liabilities 190,000 160,000 Income tax payable 120,000 140,000 Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1,710,000 360,000 450,000 250,000 ? 400,000 ? (20,000)? 400,000 640,000 (90,000) 1,520,000 Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: 1,900,000 20,000 Sales revenue Gain on sale of equipment Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses Income before income taxes 1,920,000 850,000 190,000 360,000 1,400,000 520,000 180,000 340,000 Income tax expense Net Income Notes Acquisition of plant asset during 2014 Sale proceed from sale of equipment Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 320,000 120,000 10,000 100,000 100,000 100,000

Question
I need help with Question 3 and 1
Please to show the working out. Thanks.
 
 

1. Reconstruct the company’s comparative balance sheet for 2013/2014 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 in line with your surname initial.

 

 

Simple Things Industries Ltd.
Comparative Balance Sheet
December 31, 2014 and 2013
2014
2013
Increase/(Decrease)
Assets
Cash
175,000
15,000
Accounts Receivable
230,000
220,000
Inventories
310,000
340,000
10,000 ?
Prepaid expenses
Intangible assets
Equipment, net
Total Assets
30,000
105,000
105,000
860,000
830,000 ?
1,710,000
1,520,000
Liabilities
Accounts payable
90,000
140,000
Accrued liabilities
190,000
160,000
Income tax payable
120,000
140,000
Long-term notes payable
Stockholders' Equity
Common Stock
Retained earnings
Treasury stock
Total liabilities and stockholders' equity 1,710,000
360,000
450,000
250,000 ?
400,000 ?
(20,000)?
400,000
640,000
(90,000)
1,520,000
Simple Things Industries Ltd
Income Statement
Year Ended December 31,2014
Revenues and gains:
1,900,000
20,000
Sales revenue
Gain on sale of equipment
Total revenues and gains
Expenses
Cost of goods sold
Depreciation expense
Other operating expense
Total expenses
Income before income taxes
1,920,000
850,000
190,000
360,000
1,400,000
520,000
180,000
340,000
Income tax expense
Net Income
Notes
Acquisition of plant asset during 2014
Sale proceed from sale of equipment
Receipt for issuance of notes payable
Payment for note payable
Dividend paid
Book value of equipment sold
320,000
120,000
10,000
100,000
100,000
100,000
Expand
Transcribed Image Text

Simple Things Industries Ltd. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/(Decrease) Assets Cash 175,000 15,000 Accounts Receivable 230,000 220,000 Inventories 310,000 340,000 10,000 ? Prepaid expenses Intangible assets Equipment, net Total Assets 30,000 105,000 105,000 860,000 830,000 ? 1,710,000 1,520,000 Liabilities Accounts payable 90,000 140,000 Accrued liabilities 190,000 160,000 Income tax payable 120,000 140,000 Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1,710,000 360,000 450,000 250,000 ? 400,000 ? (20,000)? 400,000 640,000 (90,000) 1,520,000 Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: 1,900,000 20,000 Sales revenue Gain on sale of equipment Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses Income before income taxes 1,920,000 850,000 190,000 360,000 1,400,000 520,000 180,000 340,000 Income tax expense Net Income Notes Acquisition of plant asset during 2014 Sale proceed from sale of equipment Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 320,000 120,000 10,000 100,000 100,000 100,000

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