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.Maple Group LtdComparative Balance SheetDecember 31, 2020 and 2019 20202019Increase/(Decrease) Assets Cash and cash equivalent ? 31,500 (10,000) Accounts Receivable ? 87,500 ? Inventories 97,100 ? ? Fixed Assets, net 142,300 ? 32,000 Total Assets 302,900 323,000 (20,100) Liabilities Accounts payable 25,600 26,600 ? Accrued liabilities 24,000 ? 1,200 Long-term notes payable 58,200 ? (20,000) Stockholders' Equity: Common Stock ? 131,400 ? Retained earnings 54,800 64,000 (9,200)Total liabilities and stockholders' equity 302,900 323,000 (20,100) - - - Maple Group Ltd Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue 370,000 Interest revenue 11,800 Total revenues and gains 381,800 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 10,500 Income tax expense 16,300 Net Loss (5,800) Notes Acquisition of fixed asset during 2020 47,500 Sale proceed from sale of plant asset - Receipt for issuance of notes payable - Payment for note payable 20,000 Dividend paid 3,400 Book value of equipment sold - Requirements How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? Reconstruct the company’s comparative balance sheet for 2019/2020 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. Prepare a complete statement of cash flows for 2020 using the indirect method using the information in line with your first name initial.

The statement of cash flows is a financial statement of a business, showing the cash inflows and…

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Intermediate Accounting: Reporting And Analysis

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ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

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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.

Maple Group Ltd
Comparative Balance Sheet
December 31, 2020 and 2019
	2020	2019	Increase/(Decrease)
Assets
Cash and cash equivalent	?	31,500	(10,000)
Accounts Receivable	?	87,500	?
Inventories	97,100	?	?
Fixed Assets, net	142,300	?	32,000
Total Assets	302,900	323,000	(20,100)
Liabilities
Accounts payable	25,600	26,600	?
Accrued liabilities	24,000	?	1,200
Long-term notes payable	58,200	?	(20,000)
Stockholders' Equity:
Common Stock	?	131,400	?
Retained earnings	54,800	64,000	(9,200)
Total liabilities and stockholders' equity	302,900	323,000	(20,100)
	-	-	-

Maple Group Ltd
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue	370,000
Interest revenue	11,800
Total revenues and gains		381,800
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		10,500
Income tax expense		16,300
Net Loss		(5,800)

Notes
Acquisition of fixed asset during 2020		47,500
Sale proceed from sale of plant asset		-
Receipt for issuance of notes payable		-
Payment for note payable		20,000
Dividend paid		3,400
Book value of equipment sold		-

Requirements

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

Reconstruct the company’s comparative balance sheet for 2019/2020 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.

Prepare a complete statement of cash flows for 2020 using the indirect method using the information in line with your first name initial.

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