How do you calculate a statement of Cash Flows using the below details: Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/Decrease Assets Cash and cash Equivalent $ 51,500.00 $ 45,400.00 $ 6,100.00 Accounts Receivable $ 51,100.00 $ 61,400.00 $ 10,000.00 Inventories $ 61,400.00 $ 51,900.00 $ 9,500.00 Fixed Assets, net $ 160,000.00 $ 110,000.00 $ 50,000.00 Total Assets $ 324,000.00 $ 268,700.00 $ 55,600.00 Liabilities Accounts Payable $ 35,450.00 $ 27,800.00 $ 7,650.00 Accrued liabilities $ 31,000.00 $ 37,550.00 -$ 6,550.00 Long-term notes payable $ 60,000.00 $ 78,540.00 -$ 18,540.00 Stockholders Equity: Common Stock $ 143,050.00 $ 105,110.00 $ 37,940.00 Retained Earnings $ 54,800.00 $ 19,700.00 $ 35,100.00 Total liabilities and Stockholders equity $ 324,300.00 $ 268,700.00 $ 55,600.00 Maple Group Ltd 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 -
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
How do you calculate a statement of
| Maple Group Ltd | |||
| Comparative |
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| December 31, 2020 and 2019 | |||
| 2020 | 2019 | Increase/Decrease | |
| Assets | |||
| Cash and cash Equivalent | $ 51,500.00 | $ 45,400.00 | $ 6,100.00 |
| $ 51,100.00 | $ 61,400.00 | $ 10,000.00 | |
| Inventories | $ 61,400.00 | $ 51,900.00 | $ 9,500.00 |
| Fixed Assets, net | $ 160,000.00 | $ 110,000.00 | $ 50,000.00 |
| Total Assets | $ 324,000.00 | $ 268,700.00 | $ 55,600.00 |
| Liabilities | |||
| Accounts Payable | $ 35,450.00 | $ 27,800.00 | $ 7,650.00 |
| Accrued liabilities | $ 31,000.00 | $ 37,550.00 | -$ 6,550.00 |
| Long-term notes payable | $ 60,000.00 | $ 78,540.00 | -$ 18,540.00 |
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| Common Stock | $ 143,050.00 | $ 105,110.00 | $ 37,940.00 |
| $ 54,800.00 | $ 19,700.00 | $ 35,100.00 | |
| Total liabilities and Stockholders equity | $ 324,300.00 | $ 268,700.00 | $ 55,600.00 |
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Maple Group Ltd |
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Income Statement |
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Year Ended December 31,2020 |
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Revenues and gains: |
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Sales revenue |
510,000 |
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Interest revenue |
11,800 |
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Total revenues and gains |
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521,800 |
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Expenses |
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Cost of goods sold |
205,500 |
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21,000 |
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Other operating expense |
126,000 |
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Interest expense |
24,300 |
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Total expenses |
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376,800 |
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Income before income taxes |
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145,000 |
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Income tax expense |
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16,300 |
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Net Income |
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128,700 |
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Notes |
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Acquisition of fixed asset during 2020 |
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71,000 |
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Sale proceed from sale of plant asset |
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- |
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Receipt for issuance of notes payable |
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- |
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Payment for note payable |
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18,540 |
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Dividend paid |
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93,600 |
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Book value of equipment sold |
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- |
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