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





?



          31,500



                    (10,000)



  Accounts Receivable





?



          87,500





?



  Inventories



      97,100





?





?



Fixed Assets, net



    142,300





?



                    32,000



Total Assets



    302,900



        323,000



                    (20,100)



      Liabilities









  Accounts payable



      25,600



          26,600





?



  Accrued liabilities



      24,000





?



                      1,200



Long-term notes payable



      58,200





?



                    (20,000)



      Stockholders' Equity:









Common Stock





?



        131,400





?



Retained earnings



      54,800



          64,000



                    (9,200)



Total liabilities and stockholders' equity



    302,900



        323,000



                    (20,100)



              -



                -



                            -















































Maple Group Ltd



Income Statement



Year Ended December 31,2020



Revenues and gains:







  Sales revenue



    370,000





    Interest revenue



      11,800





      Total revenues and gains





        381,800



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





          10,500



Income tax expense





          16,300



Net Loss





          (5,800)




Notes



Acquisition of fixed asset during 2020





          47,500



Sale proceed from sale of plant asset





                -



Receipt for issuance of notes payable





                -



Payment for note payable





          20,000



Dividend paid





            3,400



Book value of equipment sold



                -





Requirements










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







  • Reconstruct the company’s comparative balance sheet for 2019/2020 using the information in line with your first name initial and compute and show the missing figures to include the appropriate sign as a positive or negative figure.







  • Prepare a complete statement of cash flows for 2020 using the indirect method using the information in line with your first name initial.














Jun 10, 2022
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