Please assist with parts 1, 2 , 3. Thank you. Scenario:The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just beenprepareandpresented to the owners by the company's Accountant. Upon close examination of the financial informationreceived, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight bythe accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, theowners were concerned about the movement in the company's cash and cash equivalent given that the balancesheet does not show or explain the reason or reasons why there was an increase or decrease in this area. Thecompany uses the indirect method to prepare the statement of cash flows and it is expected that this should be ableto 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 haveput forward the following financial information.Maple Group LtdComparative Balance SheetDecember 31, 2020 and 201920202019 | Increase/(Decrease)AssetsCash and cash equivalent?Accounts Receivable87,550?1,550Inventories93,90098,540?160,400373,350Fixed Assets, net?49,90056,460Total Assets316,890LiabilitiesAccounts payable950Accrued liabilities22,85024,940?Long-term notes payableStockholders' Equity:82,000140,500(58,500)Common Stock61,500125,300Retained earnings54,800(9,200)Total liabilities and stockholders' equity373,350316,89056,460Page 1 of 2 Maple Group LtdIncome StatementYear Ended December 31,2020Revenues and gains:Sales revenue369,500Interest revenue11,800Total revenues and gains381,300ExpensesCost of goods soldDepreciation expenseOther operating expense205,50015,500126,000Interest expense24,300Total expenses371,300Income before income taxes10,000Income tax expense16,300Net Loss(6,300)NotesAcquisition of fixed asset during 2020Sale proceed from sale of plant assetReceipt for issuance of notes payablePayment for note payableDividend paidBook value of equipment sold65,40058,5002,900Requirements1. How can the owners use the cash flow information or what can the statement of cash flows helps theowners to do?2. Reconstruct the company's comparative balance sheet for 2019/2020 using the information and computeand 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

Balance sheet tells about the financial position of the company, while cash flow statements tells…

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer part 1, 2, 3. Thank you.
1. The unadjusted net income for the year 2019 is: 2. By how much would the December 31, 2020 retained earnings be misstated if the books are not yet closed?
Because of the errors, the retained earnings by the end of 2017, after closing, is understated/overstated by (assuming the entity intended to transfer any accumulated unrealized holding gain/loss to equity): Zero 8,000 52,000 60,000 None of the choices
[The following information applies to the questions displayed below.] Megan Company (not a corporation) was careless about its financial records during its first year of operations, 2017. It is December 31, 2017, the end of the annual accounting period. An outside CPA has examined the records and discovered numerous errors, all of which are described here. Assume that each error is independent of the others Analyze each error and indicate its effect on 2017 and 2018 net income, assets, and liabilities if not corrected. Do not assume any other errors. Use these codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect. The first transaction is used as an example. Wages earned by employees during 2017 not recorded or paid in 2017 but recorded and paid in 2018, $500. (Enter all values as positive values.) I'm unsure why my answer is incorrect.. Thanks.
What is the net effect of the errors on the December 31, 2021 retained earnings?( Leave the numerical figure positive, put a dash then identify if OVERSTATED or UNDERSTATED, example: 25000-OVERSTATED)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The Managing Director of Kotoku Ltd received the financial reports for year ended 31st December 2019 with the 2018 comparatives from his Accountant. He does not understand why the company started the year with a bank balance of GHS6,000,000 but ended the year with a bank balance of only GHS300,000. He feels the Accountant has misappropriated the funds because the company made profits of GHS4,425,000 during the 2019 financial year and so adding that amount to the opening bank balance should result in a closing bank balance of GHS10,425,000. He approached you as a financial analyst to do a thorough analysis of the financial statement. An extract of Profit or loss, statement of financial position and the cashflow prepared from the full financial statements are shown below: Statement of Cashflow for the year ended 31st December 2019 GH¢ GH¢ Cash flows from operating activities Profit before taxation 7,275,000 Adjustment for items not involving a flow of cash: Interest…
In 2018 AXA Company faced serious liquidity problems. Management decided to window dress the financial statements in a manner that improved the company's current ratios in order to hide the liquidity problem of the situation. However, in 2019 the company came out of liquidity problem and stopped window dressing practice. - which kind of qualitative characteristics of useful financial information in this case?
A. By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made for the above errors? B. Compute for the adjusted net income for the year 2021.
In 2018 AXA Company faced serious liquidity problems. Management decided to window dress the financial statements in a manner that improved the company's current ratios in order to hide the liquidity problem of the situation. However, in 2019 the company came out of liquidity problem and stopped window dressing practice. - Which types of qualitative characteristics of useful financial information?
See the image below. Please provide some solutions so that I can verify that I solved the problem correctly. Question: The effect on 2018 net income of Lukas Company of its failure to record the CM involving transaction with Falcon amounted
As the accountant was confused with the conceptual treatment of the transactions, he examined another set of financial statements, showing non-compliance with IFRS, which treated transaction one as an expense but transaction two as the issue equity preference shares. The accountant has therefore decided to follow this treatment but is concerned it is not correct. Do you agree with the treatment?