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.
The owners have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information
Maple Group Ltd
Comparative Balance Sheet
December 31, 2020 and 2019
2020
2019
Increase/(Decrease)
Assets
Cash and cash equivalent
?
Accounts Receivable
87,550
1,550
Inventories
93,900
98,540
Fixed Assets, net
160,400
49,900
Total Assets
373,350
316,890
56,460
Liabilities
Accounts payable
950
Accrued liabilities
22,850
24,940
Long-term notes payable
82,000
140,500
(58,500)
Stockholders' Equity:
Common Stock
61,500
125,300
Retained earnings
54,800
(9,200)
Total liabilities and stockholders' equity
-
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue
369,500
Interest revenue
11,800
Total revenues and gains
381,300
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
10,000
Income tax expense
16,300
Net Loss
(6,300)
Notes
Acquisition of fixed asset during 2020
65,400
Sale proceed from sale of plant asset
Receipt for issuance of notes payable
Payment for note payable
58,500
Dividend paid
2,900
Book value of equipment sold
Requirements
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