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
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
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