The following is the financial information for Shine Hair Supplies, Ltd.: Additional information: 1. Store equipment was
Question:
The following is the financial information for Shine Hair Supplies, Ltd.:
Additional information:
1. Store equipment was purchased by signing a two-year long-term note payable.
2. Additional bank loan of $35,000 was obtained for the purchase of delivery trucks.
3. Shine Hair declared and paid dividends on December 24, 2014.
Requirements
1. Identify source and use of cash for each account in the Balance Sheet.
2. Prepare a cash flow statement, using the indirect method.
3. Prepare the cash flow from operating activities section by using the direct method.
Transcribed Image Text:
Shine Hair Supplies, Ltd. Balance Sheet As of December 31 SOURCE 2014 2013 Current Assets Accounts Receivable Store Supplies Prepaid Insurance Inventory Total Current Assets 5.400 S 2,700 8,60010,300 1,800 1200 1,920 12,900 10.400 26,520 1,020 29,720 Capital Assets Store Equipment Accumulated Depreciation, Stora Equipment(3,300) (2,400) Delivery Trucks Accumulated Depreciation, Delivery Trucks (14520) 7520) Total Capital Assets 16,500 12,000 72,600 37,600 71280 39,680 Total Assets Current Liabilities Accounts Payable Interest Payable Total Current Liabilities 16,600 10,800 2,800 19,400 12,500 1,700 Long-Term Liabilities Long-Term Note Payable Bank Loan Total Long-Term Liabilities 21,500 17,000 27,500 49,000 24.500 7,500 Shareholders Equity Common Shares Retained Earnings Total Shareholders' Equity 15,000 15,000 17,600 14.200 32,600 29,200 Total Liabilities & Shareholders' Equity S101,000 $66.200 Shine Hair Supplies, Ltd Income Statement For the Year Ended December 31,2014 Revenues: Cost of Goods Sold Gross Profit Operating Expenses: $86,000 34.400 51,600 $7,900 26,000 6,000 Depreciation Expense Wages Expense Other Expenses Total Operating Expenses Interest Expense Income Before Taxes Income Taxes (40%) 39,900 2,450 9,250 3,700
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Req1 Shine HairSuppliesLtd Balance Sheet AsofDecember 31 CurrentAssets 2014 2013 SourceUses Cash 5400 2700 2700 AccountsReceivable 8600 10300 1700 Sto...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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