Homework Help is Here – Start Your Trial Now!
Business
Accounting
part 1, 2, 3. Thank you.

part 1, 2, 3. Thank you.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please answer part 1, 2, 3. Thank you.

Maple Group Ltd 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 Depreciation expense Other operating expense 205,500 15,500 126,000 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 Sale proceed from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 65,400 58,500 2,900 Requirements 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 2. Reconstruct the company's comparative balance sheet for 2019/2020 using the information and compute and show the missing figures to include the appropriate sign as a positive or negative figure. 3. Prepare a complete statement of cash flows for 2020 using the indirect method. Page 2 of 2
Transcribed Image Text:Maple Group Ltd 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 Depreciation expense Other operating expense 205,500 15,500 126,000 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 Sale proceed from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 65,400 58,500 2,900 Requirements 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 2. Reconstruct the company's comparative balance sheet for 2019/2020 using the information and compute and show the missing figures to include the appropriate sign as a positive or negative figure. 3. Prepare a complete statement of cash flows for 2020 using the indirect method. Page 2 of 2
Scenario: 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. 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 ? 160,400 373,350 Fixed Assets, net ? 49,900 56,460 Total Assets 316,890 Liabilities Accounts payable 950 Accrued liabilities 22,850 24,940 ? Long-term notes payable Stockholders' Equity: 82,000 140,500 (58,500) Common Stock 61,500 125,300 Retained earnings 54,800 (9,200) Total liabilities and stockholders' equity 373,350 316,890 56,460 Page 1 of 2
Transcribed Image Text:Scenario: 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. 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 ? 160,400 373,350 Fixed Assets, net ? 49,900 56,460 Total Assets 316,890 Liabilities Accounts payable 950 Accrued liabilities 22,850 24,940 ? Long-term notes payable Stockholders' Equity: 82,000 140,500 (58,500) Common Stock 61,500 125,300 Retained earnings 54,800 (9,200) Total liabilities and stockholders' equity 373,350 316,890 56,460 Page 1 of 2
Expert Solution
steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS