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...


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



       64,990



          61,895




 ?



   Accounts Receivable



       95,100



          88,500




 ?



   Inventories



       72,500



          79,855




 ?



Fixed Assets, net




 ?




 ?




 ?



Total Assets



     442,590



        395,800



                     46,790



      Liabilities









   Accounts payable



       45,000



          58,350




 ?



   Accrued liabilities




 ?




 ?




 ?



Long-term notes payable



       99,500



        128,550




 ?



      Stockholders' Equity:









Common Stock



     143,050



        105,110



                     37,940



Retained earnings



       43,540



          24,290



                     19,250



Total liabilities and stockholders' equity



     442,590



        395,800



                     46,790























































































Maple Group Ltd



Income Statement



Year Ended December 31,2020



Revenues and gains:







   Sales revenue



     499,000





    Interest revenue



       11,800





      Total revenues and gains





        510,800



Expenses







   Cost of goods sold



     205,500





   Depreciation expense



       28,500





   Other operating expense



     126,000





    Interest expense



       24,300





      Total expenses





        384,300



Income before income taxes





        126,500



Income tax expense





          16,300



Net Income





        110,200












































Notes







Acquisition of fixed asset during 2020





          72,950



Sale proceed from sale of plant asset





                 -



Receipt for issuance of notes payable





                 -



Payment for note payable





          29,050



Dividend paid





          90,950



Book value of equipment sold





                 -





Requirements






  1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do?




  1. Reconstruct the company’s comparative balance sheet for 2019/2020 using the information and compute and show the missing figures to include the appropriate sign as a positive or negative figure.




  1. Prepare a complete statement of cash flows for 2020 using the indirect method using the information


Jun 10, 2022
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