ICP 11-1A

The following is the Statement of Financial Position and the Statement of Income for Simple Inc.

Simple Incorporated
Statement of Financial Position
As at December 31…

20x5 20x4
Assets
Cash $56,000 $35,200
Accounts receivable 496,000 372,800
Inventory 224,000 184,000
Property, plant, and equipment 819,200 768,000
Accumulated depreciation (275,200) (240,000)
$ 1,320,000 $ 1,120,000

Liabilities and Shareholders' Equity

Liabilities
Accounts payable 416,000 400,000

Long Term Liabilities

Note payable 240,000 160,000

Shareholders' Equity
Common stock 160,000 120,000
Retained earnings 504,000 440,000
664,000 560,000
$ 1,320,000 $ 1,120,000

Simple Incorporated
Statement of Income
for the Year Ended December 31, 20x5

Revenue $ 1,600,000
Cost of Goods Sold 960,000
Gross margin 640,000

Other Expenses
Operating expenses 412,800
Depreciation 35,200
448,000
Net income $ 192,000
Required
Prepare a Statement of Cash Flow for the year ended December 31, 20x5.
ICP 11-2A

The following information relates to Timothy Ltd. for the fiscal year 20x4 and 20x5.

Timothy Ltd.
Balance Sheet
December 31, 20x5 and 20x4

20x5 20x4
Assets
Cash $35,000 $22,000
Accounts Receivable $310,000 $251,000
Prepaid Insurance $3,000 $2,000
Inventory $140,000 $115,000
Capital Assets (net accumulated depreciation $418,000 $440,000
Land $120,000 $150,000
$1,026,000 $980,000

Liabilities and Shareholders' Equity

Liabilities
Accounts Payable $260,000 $250,000
Salaries Payable $11,000 $5,000
Note Payable (long-term) $0 $50,000
$271,000 $305,000

Shareholders' Equity
Common Shares $440,000 $400,000
Retained Earnings $315,000 $275,000
$755,000 $675,000

$1,026,000 $980,000

Timothy Ltd.
Income Statement
Year ended December 31, 20x5

Sales 1,000,000
Cost of Goods Sold 600,000
Gross Profit 400,000

Other Expenses
Salaries Payable 180,000
Depreciation 22,000
Insurance 18,000
Other Expenses 55,000
Loss on Sale of Land 5,000
280,000
Net Income 120,000

Required
Prepare a cash flow statement for the year ended December 31, 20x5
ICP 11-3A

The income statement, balance sheet, and supplementary information for Max Inc are given below.

Max Incorporated
Comparative Balance Sheet
December 31, 2018

2018 2017
Assets
Cash $ 2,750 $ 3,750
Accounts receivable (net) 6,625 7,125
Inventory 3,775 2,500
Prepaid insurance 325 600
Property, plant, and equipment 20,250 20,000
Accumulated depreciation (4,000) (5,000)
Land 20,275 10,025
$ 50,000 $ 39,000

Liabilities and Shareholders' Equity

Accounts payable 2,725 2,500
wages payable 175 500
Interest payable 350
Note payable 6,500 5,000
Common stock 34,000 25,000
Retained earnings 6,250 6,000
$ 50,000 $ 39,000

Max Incorporated
Statement of Income
for the Year Ended December 31, 2018

Revenue $ 20,000
Advertising $3,300
COGS 8750
Depreciation 1250
Income tax 750
Insurance 450
Interest expense 500
Loss on sale of machine 500
wage expense 3,000 18,500
Net income $ 1,500
Additional information
Machinery was acquired by issuing common shares. Machinery cost wa $1,800
Equipment was sold during the year. The original cost of the equipment $3,750

Required
Prepare a statement of cash flow.
Inc are given below.