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
?
25,900
(10,600)
Accounts Receivable
43,200
39,000
Inventories
93,700
(46,200)
Fixed Assets, net
251,600
Total Assets
403,800
415,100
(11,300)
Liabilities
Accounts payable
26,600
21,000
Accrued liabilities
22,800
(1,300)
Long-term notes payable
65,000
Stockholders' Equity:
Common Stock
1,400
Retained earnings
161,000
175,000
(14,000)
Treasury stock
-
Total liabilities and stockholders' equity
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue
375,000
Interest revenue
11,800
Total revenues and gains
386,800
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
Income tax expense
16,300
Net Loss
(800)
Notes
Acquisition of fixed asset during 2020
56,800
Sale proceed from sale of plant asset
Receipt for issuance of notes payable
Payment for note payable
3,000
Dividend paid
13,200
Book value of equipment sold
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