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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.   Requirements   1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do?   2. Reconstruct the company’s comparative balance sheet for 2019/2020 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 2020 using the indirect method using the information in line with your first name initial.

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.   Requirements   1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do?   2. Reconstruct the company’s comparative balance sheet for 2019/2020 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 2020 using the indirect method using the information in line with your first name initial.

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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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.

 

Requirements

 

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

 

2. Reconstruct the company’s comparative balance sheet for 2019/2020 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 2020 using the indirect method using the information in line with your first name initial.

 

 

Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash and cash equivalent ? ? 87,550 93,900 Accounts Receivable 1,550 Inventories Fixed Assets, net 98,540 160,400 ? 49,900 Total Assets 373,350 316,890 56,460 Liabilities Accounts payable ? 950 Accrued liabilities 22,850 24,940 (58,500) Long-term notes payable Stockholders' Equity: Common Stock Retained earnings Total liabilities and stockholders' equity 82,000 140,500 61,500 ? 125,300 54,800 (9,200) 373,350 316,890 56.460 Page 1 of 4 Maple Group Ltd Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue Interest revenue Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Interest expense Total expenses 369,500 11,800 381,300 205,500 15,500 126,000 24,300 371,300 Income before income taxes 10,000 16,300 (6,300) Income tax expense Net Loss Notes Acquisition of fixed asset during 2020 Sale proceed from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 65,400 58,500 2,900
Transcribed Image Text:Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash and cash equivalent ? ? 87,550 93,900 Accounts Receivable 1,550 Inventories Fixed Assets, net 98,540 160,400 ? 49,900 Total Assets 373,350 316,890 56,460 Liabilities Accounts payable ? 950 Accrued liabilities 22,850 24,940 (58,500) Long-term notes payable Stockholders' Equity: Common Stock Retained earnings Total liabilities and stockholders' equity 82,000 140,500 61,500 ? 125,300 54,800 (9,200) 373,350 316,890 56.460 Page 1 of 4 Maple Group Ltd Income Statement Year Ended December 31,2020 Revenues and gains: Sales revenue Interest revenue Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense Interest expense Total expenses 369,500 11,800 381,300 205,500 15,500 126,000 24,300 371,300 Income before income taxes 10,000 16,300 (6,300) Income tax expense Net Loss Notes Acquisition of fixed asset during 2020 Sale proceed from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 65,400 58,500 2,900
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