The accounting department of Smart Hardware Technologies has prepared an Income Statement for the current year and has developed the following additional information by analyzing changes in the company's Balance Sheet accounts Smart Hardware Technologies Income Statement For the year ended December 31, 2020 Revenues: Net Sales Rs.3.200,000 Interest Revenue 40.000 Dividend Revenue 12.000 Gain on sales of plant assets. 34.000 Total Revenue and gains Rs.3.286,000 Costs and Expenses: Cost of goods sold Rs.1.620,000 Operating Expenses(excluding depreciation). 1.130,000 Depreciation expense 110,000 Interest expense... 42.000) Income Tax expense 100.000 Loss on sales of Marketable Securities 12.000 Total costs, expenses and losses 3,014,000 Net Income........... Rs.272.000 Additional Information End of Year Beginning of year Account Receivable. 650,000 700,000 Accrued Interest Receivable 10,000 7.000 Inventories 800,000 750,000 Short Term Prepayments. 25.000 20.000 Account Payable (merchandise supplies) 570.000 550.000 Accrued Operating expenses payable. 50.000 65.000 Accrued Interest payable 35,000 20.000 Accrued Income tax Payable 35,000 45.000 Following schedule summarizes the total debit and credit entries during the year in other balance Sheet accounts Debit Credit Entries Entries Marketable Securities, see paragraph ii)...... 60,000 40.000 Notes receivable (cash loan made to borrowers, see paragraph i) 45.000 30.000 Plant assets (see paragraph iv)... 300,000 145,000 Notes Payable (short-term borrowing, see paragraph 185.000 275.000 Bonds Payable (see paragraph vi ).. 625.000 Capital Stock see paragraph vi ).. 30,000 Additional Paid-Up-Capital-Capital Stock 180.000 Retained Earnings (see paragraph viil) 120,000 272.000 V. i. Dividend income and All investing and financing activities were cash transactions. ii. Rs.60,000 debit to Marketable securities represent purchase of marketable securities and Rs 40,000 credit shows proceeds from sale of marketable securities. Rs.45.000 debit to Note Receivable represent Loan made to borrowers and Rs 30,000 credit shows collection of loan from borrowers iv. R$ 300,000 debit to Plant Assets represent cash paid to acquire of Plant assets and Rs.1 45,000 credit entry represents the book value of all the plant assets sold or retired during the year. Rs.185,000 debit to Note payable represent payment to settle short term borrowing of loan and Rs 275,000 credit shows Proceeds from short-term borrowing of loan vi Rs 625,000 credit to bonds payable shows Proceeds from issuing bonds payable. vil. Sum of Rs 30,000 credit to capital stock and Rs 180.000 credit to additional paid up capital stock shows the Proceeds from issuing capital stock. viii. Rs. 120,000 debit to Retained Earnings represents dividends declared and paid during the year. Rs.272,000 credit entry represents the net income shown in Income statement ix Cash amounted to 96,000 at the beginning of the year. Instructions: Show separate computations if required of the following information 1. Cash received from customers Interest received Cash paid for merchandise 4. Cash paid for Expenses 5. Interest paid 6. Income Tax paid 7. Proceeds from sales of marketable securities 8. Proceeds from sales of plant assets 9. Proceeds from issuing capital stock b. Prepare a Statement of Cash Flows, including Operating, Investing and Financing activities sections of the statement, for the year ended on December 31, 2014. Use the direct method of reporting cash flows. Place brackets around Rupees amount representing cash outflows. . 2 3