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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

     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

 

                 -  

Requirements

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

 

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