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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 Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 115,500 2,339,500 1,305,000 165,400 405,400 1,875,800 463,700 Income before income taxes 265,000 198,700 Income tax expense Net Income Notes 600,900 Acquisition of plant asset during 2014 356,000 Sale proceed from sale of plant asset 384,900 Receipt for issuance of notes payable Payment for note payable 450,000 Dividend paid 148,500 Book value of equipment sold 240,500 Requirements 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?

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 Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 115,500 2,339,500 1,305,000 165,400 405,400 1,875,800 463,700 Income before income taxes 265,000 198,700 Income tax expense Net Income Notes 600,900 Acquisition of plant asset during 2014 356,000 Sale proceed from sale of plant asset 384,900 Receipt for issuance of notes payable Payment for note payable 450,000 Dividend paid 148,500 Book value of equipment sold 240,500 Requirements 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,224,000 115,500 Gain on sale of plant assets Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 2,339,500 1,305,000 165,400 405,400 1,875,800 463,700 Income before income taxes 265,000 198,700 Income tax expense Net Income Notes Acquisition of plant asset during 2014 600,900 Sale proceed from sale of plant asset 356,000 384,900 Receipt for issuance of notes payable 450,000 Payment for note payable Dividend paid 148,500 Book value of equipment sold 240,500 Requirements 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
Transcribed Image Text:Simple Things Industries Ltd Income Statement Year Ended December 31,2014 Revenues and gains: Sales revenue 2,224,000 115,500 Gain on sale of plant assets Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses 2,339,500 1,305,000 165,400 405,400 1,875,800 463,700 Income before income taxes 265,000 198,700 Income tax expense Net Income Notes Acquisition of plant asset during 2014 600,900 Sale proceed from sale of plant asset 356,000 384,900 Receipt for issuance of notes payable 450,000 Payment for note payable Dividend paid 148,500 Book value of equipment sold 240,500 Requirements 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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