Case 3-1 Maynard Company B*

1100 Words Oct 27th, 2013 5 Pages
Master in Business Administration Program
School of Business and Management
Xavier University - Ateneo de Cagayan
Cagayan de Oro City

Case No. 3-1 MAYNARD COMPANY (B)*

I. VIEWPOINT

Friend, Diane Maynard

II. STATEMENT OF THE PROBLEM

1. How to prepare an Income Statement in a proper form for June and explain the derivation of each item including Cost of Sales?

2. Why is the change in Cash balance greater than the Net Income? 3. Why the following amounts are incorrect Cost of Sales for June and what circumstances would it be a correct Cost of Sales? a) $ 14,715 b) $ 36,030

III. OBJECTIVE 1. To be able to present in
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3-1

Question No. 2

MAYNARD COMPANY (B)*
Attachment C
Why is the change in Cash balance greater than the Net Income?

The Changes in Cash Balance was greater than the Net Income because the Company received Cash and Payments (Sales + Receivables + Bank Loan) more than it paid Cash
(Payables + Expenses) amounting to $31,677.
 Transactions that increases Cash but did not affect Net Income 1. Bank Loan which was a financing
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