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Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020| Increase/(Decrease) Assets 175,000 230,000 310,000 15,000 220,000 340,000 Cash Accounts Receivable Inventories Prepaid expenses 30,000 105,000 860,000 10,000 105,000 Intangible assets Equipment, net Total Assets 830,000 1,710,000 1,520,000 Liabilities 90,000 190,000 120,000 360,000 Accounts payable Accrued liabilities 140,000 160,000 140,000 450,000 Income tax payable Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1.710,000 Scenario: 400,000 640,000 (90,000) 250,000 The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been distributed at a meeting of the company's board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. 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 directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped according to your first name initial. 400,000 (20,000) 1,520,000 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets 20,000 Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense 1,900,000 1,920,000 850,000 190,000 360,000 Total expenses Income before income taxes Income tax expense Net Income 1,400,000 520,000 180,000 340,000 Notes 320,000 120,000 Acquisition of plant asset during 2021 Sale proceeds from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 10,000 100,000 100,000 100,000

Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020| Increase/(Decrease) Assets 175,000 230,000 310,000 15,000 220,000 340,000 Cash Accounts Receivable Inventories Prepaid expenses 30,000 105,000 860,000 10,000 105,000 Intangible assets Equipment, net Total Assets 830,000 1,710,000 1,520,000 Liabilities 90,000 190,000 120,000 360,000 Accounts payable Accrued liabilities 140,000 160,000 140,000 450,000 Income tax payable Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1.710,000 Scenario: 400,000 640,000 (90,000) 250,000 The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been distributed at a meeting of the company's board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. 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 directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped according to your first name initial. 400,000 (20,000) 1,520,000 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets 20,000 Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense 1,900,000 1,920,000 850,000 190,000 360,000 Total expenses Income before income taxes Income tax expense Net Income 1,400,000 520,000 180,000 340,000 Notes 320,000 120,000 Acquisition of plant asset during 2021 Sale proceeds from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 10,000 100,000 100,000 100,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 98.3C
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Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020 Increase/(Decrease) Assets Cash 15,000 175,000 230,000 Accounts Receivable 220,000 310,000 30,000 105,000 Inventories 340,000 10,000 Prepaid expenses Intangible assets Equipment, net Total Assets 105,000 ? 830,000 1.520,000 860,000 ? 1,710,000 Liabilities Accounts payable Accrued liabilities Income tax payable Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1,710,000 90,000 140,000 190,000 120,000 360,000 160,000 140,000 ? Scenario: 450,000 400,000 250,000 ? The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been distributed at a meeting of the company's board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. 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 directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped according to your first name initial. 640,000 400,000 (90,000) (20,000 1,520,000 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets 20,000 Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses Income before income taxes Income tax expense Net Income 1,900,000 1,920,000 850,000 190,000 360,000 1,400.000 520,000 180,000 340,000 Notes Acquisition of plant asset during 2021 320,000 Sale proceeds from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid 120,000 10,000 100,000 100,000 100,000 Book value of equipment sold
Transcribed Image Text:Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020 Increase/(Decrease) Assets Cash 15,000 175,000 230,000 Accounts Receivable 220,000 310,000 30,000 105,000 Inventories 340,000 10,000 Prepaid expenses Intangible assets Equipment, net Total Assets 105,000 ? 830,000 1.520,000 860,000 ? 1,710,000 Liabilities Accounts payable Accrued liabilities Income tax payable Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1,710,000 90,000 140,000 190,000 120,000 360,000 160,000 140,000 ? Scenario: 450,000 400,000 250,000 ? The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been distributed at a meeting of the company's board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. 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 directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped according to your first name initial. 640,000 400,000 (90,000) (20,000 1,520,000 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets 20,000 Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Total expenses Income before income taxes Income tax expense Net Income 1,900,000 1,920,000 850,000 190,000 360,000 1,400.000 520,000 180,000 340,000 Notes Acquisition of plant asset during 2021 320,000 Sale proceeds from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid 120,000 10,000 100,000 100,000 100,000 Book value of equipment sold
Requirements 1. Answer the following questions for the directors: 2. Reconstruct the company's comparative balance sheet for 2020/2021 using the information in line with your first name initial 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 2021 using the indirect method using the information in line with your first name initial.
Transcribed Image Text:Requirements 1. Answer the following questions for the directors: 2. Reconstruct the company's comparative balance sheet for 2020/2021 using the information in line with your first name initial 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 2021 using the indirect method using the information in line with your first name initial.
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