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 ? 15,300 ? Accounts Receivable ? ? 2,250 Inventories 102,000 109,700 ? Fixed Assets, net 142,300 94,300 ? Total Assets 299,050 262,500 36,550 Liabilities Accounts payable 25,600 26,600 ? Accrued liabilities 24,000 22,800 ? Long-term notes payable 54,350 ? ? Stockholders' Equity: Common Stock 140,300 ? 8,900 Retained earnings 54,800 19,700 35,100 Total liabilities and stockholders' equity 299,050 262,500 36,550 Maple Group Ltd Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue 439,000 Interest revenue 11,800 Total revenues and gains 450,800 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 79,500 Income tax expense 16,300 Net Income 63,200 Notes Acquisition of fixed asset during 2020 63,500 Sale proceed from sale of plant asset - Receipt for issuance of notes payable - Payment for note payable 7,650 Dividend paid 28,100 Book value of equipment sold - 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 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.

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 ? 15,300 ? Accounts Receivable ? ? 2,250 Inventories 102,000 109,700 ? Fixed Assets, net 142,300 94,300 ? Total Assets 299,050 262,500 36,550 Liabilities Accounts payable 25,600 26,600 ? Accrued liabilities 24,000 22,800 ? Long-term notes payable 54,350 ? ? Stockholders' Equity: Common Stock 140,300 ? 8,900 Retained earnings 54,800 19,700 35,100 Total liabilities and stockholders' equity 299,050 262,500 36,550 Maple Group Ltd Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue 439,000 Interest revenue 11,800 Total revenues and gains 450,800 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 79,500 Income tax expense 16,300 Net Income 63,200 Notes Acquisition of fixed asset during 2020 63,500 Sale proceed from sale of plant asset - Receipt for issuance of notes payable - Payment for note payable 7,650 Dividend paid 28,100 Book value of equipment sold - 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 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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

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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Problem 11P: A review of Anderson Corporations books indicates that the errors and omissions pertaining to the...

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Maple Group Ltd
Comparative Balance Sheet
December 31, 2020 and 2019
	2020	2019	Increase/(Decrease)
Assets
Cash and cash equivalent	?	15,300	?
Accounts Receivable	?	?	2,250
Inventories	102,000	109,700	?
Fixed Assets, net	142,300	94,300	?
Total Assets	299,050	262,500	36,550
Liabilities
Accounts payable	25,600	26,600	?
Accrued liabilities	24,000	22,800	?
Long-term notes payable	54,350	?	?
Stockholders' Equity:
Common Stock	140,300	?	8,900
Retained earnings	54,800	19,700	35,100
Total liabilities and stockholders' equity	299,050	262,500	36,550

Maple Group Ltd
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue	439,000
Interest revenue	11,800
Total revenues and gains		450,800
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		79,500
Income tax expense		16,300
Net Income		63,200


Notes
Acquisition of fixed asset during 2020		63,500
Sale proceed from sale of plant asset		-
Receipt for issuance of notes payable		-
Payment for note payable		7,650
Dividend paid		28,100
Book value of equipment sold		-

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 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.

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