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
-
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
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