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
51,500
45,400
?
Accounts Receivable
Inventories
61,400
9,500
Fixed Assets, net
160,000
110,000
Total Assets
324,300
268,700
55,600
Liabilities
Accounts payable
Accrued liabilities
31,000
(6,550)
Long-term notes payable
60,000
78,540
Stockholders' Equity:
Common Stock
143,050
105,110
37,940
Retained earnings
54,800
19,700
35,100
Total liabilities and stockholders' equity
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue
510,000
Interest revenue
11,800
Total revenues and gains
521,800
Expenses
Cost of goods sold
205,500
Depreciation expense
21,000
Other operating expense
126,000
Interest expense
24,300
Total expenses
376,800
Income before income taxes
145,000
Income tax expense
16,300
Net Income
128,700
Notes
Acquisition of fixed asset during 2020
71,000
Sale proceed from sale of plant asset
-
Receipt for issuance of notes payable
Payment for note payable
18,540
Dividend paid
93,600
Book value of equipment sold
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