Scenario:The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just...

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Scenario:The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area.  The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners.										Maple Group Ltd														Comparative Balance Sheet														December 31, 2020 and 2019																								2020										2019										Increase/(Decrease)														        Assets																																												   Cash and cash equivalent															 ?																			 ?																			 ?																		   Accounts Receivable										       87,550															 ?														                       1,550														   Inventories										       93,900										          98,540															 ?																		Fixed Assets, net										     160,400															 ?														                     49,900														Total Assets										     373,350										        316,890										                     56,460														      Liabilities																																												   Accounts payable															 ?																			 ?														                          950														   Accrued liabilities										       22,850										          24,940															 ?																		Long-term notes payable										       82,000										        140,500										                    (58,500)														      Stockholders' Equity:																																												Common Stock															 ?														          61,500										                   125,300														Retained earnings										       54,800															 ?														                     (9,200)														Total liabilities and stockholders' equity										     373,350										        316,890										                     56,460																								              -										                 -										                            -																																																														Maple Group Ltd																								Income Statement																								Year Ended December 31,2020																								Revenues and gains:																																												   Sales revenue										     369,500																																		    Interest revenue										       11,800																																		      Total revenues and gains																				        381,300																								Expenses																																												   Cost of goods sold										     205,500																																		   Depreciation expense										       15,500																																		   Other operating expense										     126,000																																		    Interest expense										       24,300																																		      Total expenses																				        371,300																								Income before income taxes																				          10,000																								Income tax expense																				          16,300																								Net Loss																				           (6,300)																																																																									Notes																																																									Acquisition of fixed asset during 2020																				          65,400																								Sale proceed from sale of plant asset																				                 -																								Receipt for issuance of notes payable																				                 -																								Payment for note payable																				          58,500																								Dividend paid																				            2,900																								Book value of equipment sold																				                 -									1. How can the owners use the cash flow information or what can the statement of cash flows help the owners to do?

Scenario: The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the...

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Maple Group Ltd
Comparative Balance Sheet
December 31, 2020 and 2019
	2020	2019	Increase/(Decrease)
Assets
Cash and cash equivalent	?	?	?
Accounts Receivable	87,550	?	1,550
Inventories	93,900	98,540	?
Fixed Assets, net	160,400	?	49,900
Total Assets	373,350	316,890	56,460
Liabilities
Accounts payable	?	?	950
Accrued liabilities	22,850	24,940	?
Long-term notes payable	82,000	140,500	(58,500)
Stockholders' Equity:
Common Stock	?	61,500	125,300
Retained earnings	54,800	?	(9,200)
Total liabilities and stockholders' equity	373,350	316,890	56,460
	-	-	-

Maple Group Ltd
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue	369,500
Interest revenue	11,800
Total revenues and gains		381,300
Expenses
Cost of goods sold	205,500
Depreciation expense	15,500
Other operating expense	126,000
Interest expense	24,300
Total expenses		371,300
Income before income taxes		10,000
Income tax expense		16,300
Net Loss		(6,300)

Notes
Acquisition of fixed asset during 2020		65,400
Sale proceed from sale of plant asset		-
Receipt for issuance of notes payable		-
Payment for note payable		58,500
Dividend paid		2,900
Book value of equipment sold		-