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 Requirements How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 2Reconstruct 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 using the information Financial info to be used by first names with initials (K, Q, M, F) 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 373,350 316,890 56,460 - - - 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 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 -

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 Requirements How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 2Reconstruct 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 using the information Financial info to be used by first names with initials (K, Q, M, F) 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 373,350 316,890 56,460 - - - 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 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 -

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Scenario:

The owners have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information

Requirements

How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do?

2Reconstruct 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 using the information

Financial info to be used by first names with initials (K, Q, M, F)

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	373,350	316,890	56,460
	-	-	-

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	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		-

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